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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