Germany Supported the Creation of the Euro for All of the Following

question 47

Multiple Choice

Germany supported the creation of the euro for all of the following reasons EXCEPT:

• A)the new European central bank would be located in Germany.
• B)the new European central bank would be similar to the German central bank.
• C)the new system had controls in place to maintain Germany's commitment to high inflation.
• D)the euro would help reduce currency volatility in Europe.
• E)other European countries were unlikely to support a Deutsche mark-based currency system.

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Definitions:

Inventory

The total amount of goods and materials held in stock by a business, industry, or other entity, used in production or sales.

Sole Proprietorship

An unincorporated business firm owned by one person.

Liability

Liability refers to legal financial debts or obligations that arise during the course of business operations, which an entity is responsible for settling.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.