A geographic area within which labor is sufficiently mobile to permit speedy adjustments to payment imbalances and regional unemployment to permit exchange rates to be fixed and a common currency to be adopted is known as an optimal

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An optimal currency area refers to a geographic area where labor can easily move and adjust to economic imbalances, allowing for a fixed exchange rate and a common currency. This is necessary to ensure the stability and effectiveness of a shared currency system. The other options (sterilization area, fiscal area, banking area) do not involve the necessary mobility of labor and economic adjustment factors necessary for an optimal currency area.

A Geographic Area Within Which Labor Is Sufficiently Mobile to Permit