Question

Which of the following characteristics relate to "dollarize"? a. When a country that is not the United States uses the U.S. dollar as its currency. b. The market in which people buy one currency while using another currency. c. When a currency is worth less in terms of other currencies. d. An investment in another country that is purely financial and doesn’t involve any management responsibility.

Answer 1

When a country that is not the United States uses the U.S. dollar as its currency.

Step-by-step explanation:

A country is said to "dollarize" when such a country allows the use of the dollar alongside or instead of its currency.

A country may dollarize in order to increase ease of doing businesses or as a means of facilitating tourism and boosting the country's tourism potential.

Dollarization may be official and have the approval of the leadership of a country. This occurs when a country ceases to use her domestic currency and begins to use only foreign currency.