Which one of the following is a characteristic that increases the benefit of a single currency?
A) A high degree of trade integration among the countries of the common currency area.
B) A high degree of political cooperation among the countries of the common currency area.
C) A common defence policy among the countries of the common currency area.
D) A similar climate in the countries of the common currency area

Question

Quizplus · Accepted Answer

A high degree of trade integration among the countries of the common currency area means that there are frequent transactions and exchanges among the countries. This increases the benefits of a single currency as it simplifies the process of trade and eliminates the need for currency exchange, lowering transaction costs and reducing uncertainty for businesses. Political cooperation and a common defence policy may also have benefits for the stability of the currency, but they do not directly affect the benefits of a single currency for trade and business transactions. The climate of the countries is irrelevant to the benefits of a single currency.

Which One of the Following Is a Characteristic That Increases