The formation of the European Monetary Union is expected to entail benefits for member countries which include all of the following except:
A) Greater certainty for investors within the EMU
B) Lower costs of transactions within the EMU
C) Independent monetary policies run by the central bank of each member country
D) Enhanced competition among companies in member countries

Question

Quizplus · Accepted Answer

The formation of the European Monetary Union involves the introduction of a single currency (Euro) shared by member countries and the implementation of a common monetary policy run by the European Central Bank (ECB). This means that member countries will no longer have independent monetary policies, as stated in option C. The benefits of the EMU include greater certainty for investors, lower transaction costs, and enhanced competition among companies, as stated in options A, B, and D, respectively.

The Formation of the European Monetary Union Is Expected to Entail