Trade dollarization refers to the phenomenon of:
a. the practice of insisting on trade in U.S. dollars.
b. the fact that many international commodities are traded in U.S. dollars only.
c. the fact that many dollars have flowed out of the U.S. and are used in other nations as their national currency.
d. the falling dollar combined with a rising trade balance.
Ans: b. the fact that many international commodities are traded in U.S. dollars only.
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In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?
A) W1 and L1 with competition versus W2 and L2 with monopsony B) W2 and L2 with competition versus W1 and L1 with monopsony C) W2 and L2 with competition versus W3 and L1 with monopsony D) W3 and L3 with competition versus W3 and L1 with monopsony
Which of the following is NOT a function of rental prices?
A) to stimulate the construction of new housing B) to ration the existing housing stock C) to provide housing to individuals below market value D) to allocate existing scarce housing among different people