QUESTION An argument against the North American Free Trade Agreement centered on the fear that ratification would result in: A. low interest rates in the Unites States and Canada. B. mass exodus of jobs from the United States into Mexico. C. a move toward a common currency for NAFTA member nations. D. competition from the […]
QUESTION Which of the following comprises the euro zone? A. The 27 member nations of the European Union B. The member nations of the European Union and the applicants to the union C. The 18 member nations who use the euro as their currency D. The member nations of the European Union and countries who […]
QUESTION Which of the following is a significant impact of the North American Free Trade Agreement (NAFTA)? A. It led to decreased economic stability in Canada. B. It led to a major trade deficit for Canada. C. It helped create the background for increased political stability in Mexico. D. It led to a trade surplus […]
QUESTION Which of the following countries has adopted the euro as its currency? A. Great Britain B. France C. Denmark D. Sweden E. Switzerland ANSWER B
QUESTION Establishment of the euro required participating national governments to: A. have a sound fiscal situation. B. have stable exchange rates. C. be democratic in nature. D. give up control over monetary policy. E. have a high degree of price stability. ANSWER D
QUESTION A benefit of adopting the euro as a common currency is that it: A. makes it easier to compare prices across Europe. B. makes Europe an optimal currency area. C. increases the range of investment options open only to institutions. D. leads to higher prices, which translate into substantial gains for European producers. E. […]
QUESTION Over time the euro will impact the pan-European capital market by leading to: A. an increase in the cost of capital. B. a decline in the overall level of savings and investment. C. an increased efficiency with which investment funds are allocated. D. reduced liquidity in the market. E. reduced competition among European producers. […]
QUESTION 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 […]
QUESTION 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 […]
QUESTION Which of the following has 754 members as of 2014, and is directly elected by the populations of the member-states? A. Court of Justice B. European Council C. European Commission D. European Parliament E. European Community ANSWER D
