Which of the following is the LEAST common? A) free trade areas B) currency unio
ID: 1114427 • Letter: W
Question
Which of the following is the LEAST common?
A) free trade areas
B) currency unions
C) currency crises
D) nominal anchors
Economic benefits to nations in a currency union will be larger whenever:
A) the volume of transactions between the nations is larger and there is a greater degree of economic integration.
B) the volume of transactions is smaller but there is a greater degree of economic integration.
C) trade and financial flows between the nations are erratic.
D) financial integration is lower but cultural integration is higher.
Explanation / Answer
Ans:
1) Option B
currency unions
currency unions is a group of countries which share a common currency whose main purpose is to keep the value of their currency at a certain level.
2) Option A
the volume of transactions between the nations is larger and there is a greater degree of economic integration.
The main goal of a currency union is to synchronize and manage each country's monetary policy.The economic integration and large volume of transcations will increase the economic benefits from a currency union.
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