QUESTION The European Parliament is responsible for proposing European Union (EU) legislation, implementing it, and monitoring compliance with EU laws by member-states. Indicate whether the statement is true or false. ANSWER FALSE The European Parliament, which meets in Strasbourg, France, is primarily a consultative rather than legislative body. It debates legislation proposed by the […]
QUESTION 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. Indicate whether the statement is true or false. ANSWER TRUE By adopting the euro, the European Union has created the second most widely traded currency in the world after […]
QUESTION A disadvantage of the euro is that the development of a pan-European, euro-denominated capital market will decrease the range of investment options open to both individuals and institutions. Indicate whether the statement is true or false. ANSWER FALSE An advantage of the euro is that the development of a pan-European, euro-denominated capital market […]
QUESTION The Andean Community now operates as a customs union. Indicate whether the statement is true or false. ANSWER TRUE In 1990, the heads of the five current members of the Andean Community—Bolivia, Ecuador, Peru, Colombia, and Venezuela—met in the Galápagos Islands. The resulting Galápagos Declaration effectively relaunched the Andean Pact, which was renamed […]
QUESTION Since its establishment in January 1, 1999, the euro has steadily appreciated against the U.S. dollar, reaffirming the ability of the European Central Bank to manage monetary policy within the euro zone. Indicate whether the statement is true or false. ANSWER FALSE Since its establishment in January 1, 1999, the euro has a […]
QUESTION The Andean Pact was largely based on the European Union model and was highly successful at achieving its stated goals. Indicate whether the statement is true or false. ANSWER FALSE Bolivia, Chile, Ecuador, Colombia, and Peru signed an agreement in 1969 to create the Andean Pact. The pact was largely based on the […]
QUESTION In an optimal currency area, 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. Indicate whether the statement is true or false. ANSWER TRUE According to critics, a drawback of the euro is that […]
QUESTION A major stumbling block in the creation of the Free Trade Area of the Americas is that the United States wants its southern neighbors to agree to higher manufacturing tariffs, which they are not eager to embrace. Indicate whether the statement is true or false. ANSWER FALSE A major stumbling block in the […]
QUESTION The basic objective of the Association of Southeast Asian Nations is to foster freer trade among member countries and to achieve cooperation in their industrial policies. Indicate whether the statement is true or false. ANSWER TRUE The basic objective of the Association of Southeast Asian Nations is to foster freer trade among member […]
QUESTION The stated aim of the Asia-Pacific Economic Cooperation is to increase multilateral cooperation in view of the economic rise of the Pacific nations and the growing interdependence within the region. Indicate whether the statement is true or false. ANSWER TRUE The Asia-Pacific Economic Cooperation (APEC) was founded in 1990 at the suggestion of […]
