An optimal currency zone is a group of countries that _____.

Question

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An optimal currency zone refers to a geographic region where it would be more efficient economically for the countries involved to adopt a single currency rather than maintain their own separate currencies. This is because the benefits of having a common currency, such as reduced transaction costs and eliminated exchange rate uncertainty, outweigh the disadvantages, like the loss of independent monetary policy.

An Optimal Currency Zone Is a Group of Countries That