Compared to 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 because they use a common currency, removing the risk of currency devaluation or revaluation that can lead to such attacks.

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