Dollarization Occurs When

Multiple Choice

Dollarization occurs when

A) the Federal Reserve finances a federal budget deficit by buying newly issued Treasury bonds in order to prevent interest rates from rising
B) a country adopts the US dollar as its legal tender
C) foreign currency boards target the US dollar
D) US importers reprice items in dollar terms
E) The IMF or a central bank sells reserves of US dollars on the world market to alter exchange rates