ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The benefits of a common currency, such as the euro used by the EU, include:
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Increased stability for exporters, importers, tourists, investors, and creditors.
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Increased returns on investment and speculation on foreign currency markets.
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Less incentive for employees to leave to work in other countries
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All of the above
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Explanation:
Detailed explanation-1: -However, it cannot be denied that the use of a common currency facilitates the exchange, specialization, and integration of national markets into a wider market. It also significantly reduces the costs of transaction induced by currency risk and increases benefits from international trade.
Detailed explanation-2: -Currently, the euro (€) is the official currency of 20 out of 27 EU member countries which together constitute the Eurozone, officially called the euro area.
Detailed explanation-3: -The euro was an attempt to advance the economic integration of Europe by having the countries of the eurozone share a common currency.
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