An excess of merchandise exports over merchandise imports results in a balance of trade deficit. True False QUESTION 17 A currency board exists when a country's central bank commits to back its money supply entirely with foreign reserves at all times. True False QUESTION 18 Which of the following is NOT an argument against dollarization? O A Dollarization causes a loss of sovereignty over domestic monetary policy B. Dollarization causes the country to lose the power of seignorage OC. The central bank of the dollarized country loses the role of lender of last resort D. Dollarization removes currency volatility against the dollar