One of the criticisms of the EU's common currency policy is that it
A)hinders trade.
B)hinders investment.
C)increases transaction costs.
D)leads to a loss of country sovereignty.
E)All of the above are true.

Question

Quizplus · Accepted Answer

The common currency policy, by transferring control over monetary policy from national governments to the European Central Bank, leads to a loss of country sovereignty. This is because countries in the Eurozone cannot independently adjust their monetary policy to suit their national economic conditions.

One of the Criticisms of the EU's Common Currency Policy