Which of the Following Is True

question 58

Multiple Choice

Which of the following is true?

• A)Although 15 countries in Europe have adopted a single currency called the euro, each country still retains control over its own monetary policy.
• B)The Eurosystem implements and carries out monetary policy for the eurozone.
• C)If countries have divergent policies, then a fixed exchange rate system is preferable over a flexible exchange rate system.
• D)Under a flexible exchange rate system, capital flows free countries to have absolute control over their own monetary policies and exchange rate risk is reduced.

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Definitions:

Accurate

Free from errors or mistakes; precise.

Cent

A small unit of currency, constituting one-one-hundredth of a primary currency unit, used in numerous countries worldwide.

Significant Figures

The digits in a number that are meaningful in terms of accuracy or precision, often used in scientific measurements.

Percent

A unit of measure used to express a ratio as a fraction of 100.