Chap002 18 - B was affirmed at the fixed exchange rate C was tied to gold D none of the above 76 According to the theory of optimum currency areas

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72. The main cost of European monetary union is A. the loss of national monetary and exchange rate policy independence. B. increased exchange rate uncertainty. C. lessened political integration. D. none of the above 73. The euro zone is remarkably comparable to the United States in terms of A. population size. B. GDP. C. international trade share. D. all of the above 74. Which country is NOT using the euro? A. Greece B. Italy C. Sweden D. Portugal 75. Once the changeover to the euro was completed by July 1, 2002, the legal-tender status of national currencies in the euro zone A. was canceled, leaving the euro as the sole legal tender in the euro zone countries.
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Unformatted text preview: B. was affirmed at the fixed exchange rate. C. was tied to gold. D. none of the above 76. According to the theory of optimum currency areas, A. the relevant criterion for identifying and designing a common currency zone is the degree of factor (i.e. capital and labor) mobility within the zone. B. exchange rates should reflect the degree to which workers are willing to move to get a better job. C. exchange rates are determined by portfolio managers seeking the highest return. D. none of the above....
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

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