Which of the following is the most likely consequence of the introduction of the euro as the common currency of many European countries?
A)It will lead to less international trade.
B)It will reduce the costs of trading within Europe.
C)It will lead to greater differences in monetary policy amongst participating countries.
D)It will reduce trade of some European countries with Canada.

Question

Quizplus · Accepted Answer

The introduction of the euro as a common currency is likely to reduce the costs of trading within Europe as there will be no need for currency exchange fees or the uncertainty of fluctuating exchange rates. This is likely to encourage more trade between participating countries. The other options are less likely or not directly related to the introduction of the euro.

Which of the Following Is the Most Likely Consequence of the Introduction