FIN 564 Week 8 Final Exam >Management Of Financial Institutions (FIN 564)
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FIN 564 Week 8 Final Exam Management Of Financial Institutions Graded A+
- Examen • 4 pages • 2021
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1.	Should countries forgo using their own currency and adopt as legal tender a stable foreign currency? Address the following in your answer: 
a.	Give two advantages and two disadvantages of dollarization. 
Advantages: Lower cost of foreign credit; enhance credibility of government policy; stability; international trade. 
Disadvantages: lose seignorage; lose lender of last resort; lose control of monetary policy. 
 
b.	Does a country need permission to dollarize? No 
 
c.	Would dollarization b...
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