Question :
91.Which of the following countries has adopted the euro as : 1299355
91.Which of the following countries has adopted the euro as its currency?
A.Great Britain
B.France
C.Denmark
D.Sweden
E.Switzerland
92.Which of the following is true with regard to establishment of the euro?
A.It required participating national governments to have a sound fiscal situation.
B.It required participating national governments to have stable exchange rates.
C.It required participating national governments to be democratic in nature.
D.It required participating national governments to give up control over monetary policy.
E.It required participating national governments to have a high degree of price stability.
93.Which of the following is true regarding the establishment of the euro?
A.Great Britain, Denmark, and Sweden were among the first countries to adopt the euro.
B.Establishment of the euro did not require participating national governments to give up their own currencies.
C.By adopting the euro, the European Union has created the second most widely traded currency in the world after that of the U.S. dollar.
D.Establishment of the euro did not require participating national governments to give up national control over monetary policy.
E.The governments of European countries routinely sacrifice national sovereignty for the greater good.
94.Which of the following is a benefit of adopting the euro?
A.The adoption of a common currency makes it easier to compare prices across Europe.
B.The adoption of a common currency makes Europe an optimal currency area.
C.The introduction of a common currency increases the range of investment options open only to institutions.
D.The introduction of a common currency leads to higher prices which translate into substantial gains for European producers.
E.The introduction of a common currency decreases competition because it has become easier for consumers to shop around.
95.A key advantage of adopting the euro is that it:
A.helps in reduction of competition in Europe.
B.has prevented the development of a highly liquid pan-European capital market.
C.lowers foreign exchange and hedging costs in Europe.
D.insulates Europe from international competition.
E.increases the range of investment options open to institutions only.
96.Which of the following is true about how the euro will impact the pan-European capital market?
A.It will raise the cost of capital.
B.It will lead to a decline in the overall level of savings and investment.
C.It will increase efficiency with which investment funds are allocated.
D.It will lead to reduced liquidity in the market.
97.Which of the following is a drawback of adopting the euro?
A.Loss of control over national monetary policy
B.Increase in the cost of capital
C.Reduction in the liquidity of capital markets
D.Reduction of price differentials within the euro zone
E.Loss of investment options open to both individuals and institutions
98.The Maastricht Treaty called for:
A.establishment of the independent European Central Bank (ECB).
B.the abolition of restrictions on cabotage.
C.establishment of the European Parliament.
D.the formation of a single market for the European Union.
E.placing restrictions on foreign exchange transactions between member-countries.
99.Which of the following is a reason for Great Britain, Denmark, and Sweden to stay out of the euro zone?
A.The dollar peg advocated by some members of the European Union
B.The implied loss of national sovereignty to the European Central Bank
C.The volatility of the euro
D.The reluctance to compete directly against the U.S. dollar
E.The reluctance to be considered an optimal currency area
100.In a(n) ______, similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy.
A.managed currency zone
B.open exchange regime
C.optimal currency area
D.free trade area
E.advanced monetary zone
