rency board or dollarization? Select one: a. Loss of independent monetary policy and flexibility in exchange rate policy. b. Increased exposure of the economy to shocks from the anchor country. c. Central bank unable to create money and act as lender of last resort. d. Greater economic openness and transparency

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter19: International Finance And The Foreign Exchange Market
Section: Chapter Questions
Problem 4CQ
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Which of the following is NOT a disadvantage of currency board or dollarization?
Select one:
a.
Loss of independent monetary policy and flexibility in exchange rate policy.
b.
Increased exposure of the economy to shocks from the anchor country.
c.
Central bank unable to create money and act as lender of last resort.
d.
Greater economic openness and transparency
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