What is dollarization Pegging the value of a domestic curren

What is dollarization?

?Pegging the value of a domestic currency against the market value of gold.

?Pegging the value of a foreign currency against the U.S. dollar.

?Using the dollar or some other foreign currency together with or instead of a domestic currency.

?Increasing the price of goods based on the supply of money.

?Maintaining an acceptable exchange rate based on government intervention.

	a.	?Pegging the value of a domestic currency against the market value of gold.
	b.	?Pegging the value of a foreign currency against the U.S. dollar.
	c.	?Using the dollar or some other foreign currency together with or instead of a domestic currency.
	d.	?Increasing the price of goods based on the supply of money.
	e.	?Maintaining an acceptable exchange rate based on government intervention.

Answer : \" b. Pegging the value of a foreign currency against the U.S. dollar. \"

=> Dollarization is use of dollar as the recognised foreign currency officially for foreign currency.