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Which of the Following Best Illustrates the Elimination of Transaction

Question 1

Multiple Choice

Which of the following best illustrates the elimination of transaction costs that result from the adoption of the euro as the single European currency?


A) When a German company imports French wine it no longer needs to use a bank in completing the transaction.
B) When a German company makes purchasing plans that involve importing French wine it knows exactly what the cost will be in terms of its own currency.
C) When a German company imports French wine it no longer has to pay a tariff on the wine.
D) When a German company imports French wine it no longer has to pay a charge for converting German currency into French currency.

Correct Answer:

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