Compared with a system of fixed exchange rates,currency unions are beneficial because they
A)restrict what countries can do with fiscal policy.
B)allow exchange rates to float.
C)allow every country to have an independent monetary policy.
D)eliminate the possibility of speculative attacks.

Question

Quizplus · Accepted Answer

Currency unions eliminate the possibility of speculative attacks on individual currencies because they involve adopting a single currency or pegging at a fixed rate to a common currency, thereby removing the fluctuations and uncertainties that can lead to speculative attacks.

Compared with a System of Fixed Exchange Rates,currency Unions Are