Which of the following is true regarding the euro?

Question

Quizplus · Accepted Answer

A) Exchange rate risk is eliminated because participating European countries have a common currency, which reduces uncertainties and transaction costs, allowing for easier trade and capital flows.
B) The euro creates a monetary union, leading to more consistent economic conditions across countries, as they share a single monetary policy and exchange rate.
C) As part of the monetary union, each participating country gives up its ability to conduct monetary policy, which is now largely set by the European Central Bank.

Which of the Following Is True Regarding the Euro