Similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy in a(n):
A)managed currency zone.
B)open exchange regime.
C)optimal currency area.
D)free trade area.
E)advanced monetary zone.

Question

Quizplus · Accepted Answer

In an optimal currency area, similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy. Many of the European economies in the euro zone, however, are very dissimilar.

Similarities in the Underlying Structure of Economic Activity Make It