The countries that use the euro as their currency

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52) The countries that use the euro as their currency have: A) agreed to use a single currency ( exchange rate stability ), allow individual control of their own money supply ( monetary independence ), but give up the free movement of capital in and out of their economies ( financial integration ). B) gained control over their own money supply ( monetary independence ), allowed the free movement of capital in and out of their economies ( financial integration ), but give up exchange rate stability . C) agreed to use a single currency ( exchange rate stability ), allow the free movement of capital in and out of their economies ( financial integration ), but give up individual control of their own money supply ( monetary independence ). D) none of the above NNN 53) Beginning in 1991 Argentina conducted its monetary policy through a currency board. In January 2002, Argentina abandoned the currency board and allowed its currency to float against other currencies. The country took this step because: 8
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54) In January 2002, the Argentine Peso changed in value from Peso1.00/$ to Peso1.40/$, thus, the Argentine Peso ________ against the U.S. dollar. 55) In January 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as: 56) You have been hired as a consultant to the central bank for a country that has for many years suffered from repeated currency crises and depends heavily on the U.S. financial and product markets. Which of the following policies would have the greatest effectiveness for reducing currency volatility of the client country with the United States? A) dollarization B) an exchange rate pegged to the U.S. dollar C) an internationally floating exchange rate D) an exchange rate with a fixed price per ounce of gold
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