Which of the following is an advantage of a common currency in Europe?
A) Each country could conduct its own, independent fiscal policy.
B) Each countries could devalue its currency to increase domestic output.
C) Each country could conduct its own, independent monetary policy.
D) Countries could more easily erect barriers to trade.
E) Exchange rate uncertainty within the common currency area would be eliminated.

Question

Quizplus · Accepted Answer

With a common currency, there would no longer be any need for currency exchanges between member nations. This would eliminate exchange rate uncertainty and make trade and investments within the common currency area much easier.

Which of the Following Is an Advantage of a Common