Compared to a system of flexible exchange rates,currency unions have the disadvantage of
A)requiring all its members to share a common monetary policy.
B)allowing exchange rates to float.
C)requiring every country to share a common fiscal policy.
D)decreasing the sacrifice ratio.

Question

Quizplus · Accepted Answer

Currency unions require all members to share a common monetary policy, which can be problematic if different countries have different economic needs and priorities. With a system of flexible exchange rates, countries can adjust their monetary policy independently to suit their own needs.

Compared to a System of Flexible Exchange Rates,currency Unions Have