A monetary union with a common currency is an example of a:
A) fixed-exchange-rate system.
B) flexible-exchange-rate system.
C) small open economy.
D) large open economy.

Question

Quizplus · Accepted Answer

A monetary union with a common currency establishes a fixed exchange rate system among its member countries, as the exchange rate between each country's currency is fixed at a set value within the union.

A Monetary Union with a Common Currency Is an Example