Criteria for an optimum currency area include all the following except
A)fiscal transfers.
B)similar business cycle patterns.
C)extensive trade with each other.
D)a common language.

Question

Quizplus · Accepted Answer

A common language is not necessary for the formation of an optimum currency area, although it may facilitate economic and political integration. The other criteria listed (fiscal transfers, similar business cycle patterns, and extensive trade with each other) are generally considered important factors for the success of a currency union.

Criteria for an Optimum Currency Area Include All the Following