Over time the euro will impact the pan-European capital market by leading to

Question

Quizplus · Accepted Answer

The euro will lead to an increased efficiency with which investment funds are allocated. This is because the single currency eliminates exchange rate risk and reduces transaction costs, making it easier for investors to diversify their portfolios across different European countries. As a result, capital will flow to the most productive and profitable companies, which will ultimately benefit the overall economy. A, B, D, and E are incorrect because there is no evidence or logical reasoning to support these claims.

Over Time the Euro Will Impact the Pan-European Capital Market