Some Economists Argue That Monetary Union Does Not Work as Well

question 82

Multiple Choice

Some economists argue that monetary union does not work as well in Europe as it does in Canada and the United States for all of the following reasons except:

• A)labour is not as mobile in Europe as it is in Canada and the United States.
• B)there is no strong central government that can use fiscal policy in Europe as there is in Canada and the United States.
• C)there is no common language in Europe as there is in Canada and the United States.
• D)there is no European central bank as there is in Canada and the United States.

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Definitions:

Investment Opportunities

Prospects or options available for investors to put their money into securities, assets, or projects expected to yield a return over time.

Dividend Policies

Dividend policies are guidelines a company follows to decide the size and pattern of cash dividends to its shareholders over time.

Stock Splits

A corporate action to increase the number of outstanding shares, thereby reducing the price per share, without changing the market cap.

Residual Dividend Policy

A strategy where dividends paid to shareholders are set as the remainder after all project and operation expenses and investments are covered.