Which of the following observations is true?
A)Countries adopting the euro need not give up their own currencies.
B)Countries agreeing the euro could allow their exchange rates to float against each other.
C)Countries adopting the euro need to only satisfy the criteria of being democratic in nature.
D)Countries adopting the euro have to give up control over monetary policy.

Question

Quizplus · Accepted Answer

Establishing the euro required participating national governments not only to give up their own currencies,but also to give up control over monetary policy.Countries can adopt the euro when they fulfill certain economic criteria-a high degree of price stability,a sound fiscal situation,stable exchange rates,and converged long-term interest rates.

Which of the Following Observations Is True