ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The euro will depreciate because the demand for euros will decrease
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The dollar will appreciate because the supply of dollars will increase
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The euro will depreciate because the supply of euros will increase
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The dollar will appreciate because the demand of dollars will decrease
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Detailed explanation-1: -Answer and Explanation: The correct answer is b. The euro will depreciate because the supply of euros will increase .
Detailed explanation-2: -All EU Member States, except Denmark, are required to adopt the euro and join the euro area, once they are ready to fulfil them.
Detailed explanation-3: -Using the USD as the base in the above list, GBP, EUR, Swiss franc, Bulgarian lev, BAM and Belarus rubble are the strongest currencies in Europe. However, based on international trade and central bank reserves, the pound sterling, Swiss franc and EUR are the most powerful currencies on that continent.
Detailed explanation-4: -Which European countries still use their own currency? As Croatia becomes the 20th EU nation to adopt the euro, there are still a number of members that haven’t taken this step. In total, seven EU countries don’t use the euro: Bulgaria, Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden.
Detailed explanation-5: -The Macedonian denar, Russian rubble, Serbian dinar, Hungarian front may the weakest on that continent, it’s important to note that GBP, Euro, Swiss franc remain the strongest currencies in Europe. Sources: Featured Image by Hungary Today. András Balogh (2021).