Which of the Following Statements About the Euro Is True

question 44

Multiple Choice

Which of the following statements about the euro is true?

• A)It was adopted by all existing EU members when it was first initiated.
• B)It must be adopted by countries as a precondition to joining the EU.
• C)It cannot be used by countries that are not members of the EU.
• D)It was designed to eliminate currency as a barrier to trade in the EU.

---

Definitions:

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.

Interest-Bearing Note

A debt instrument in which the issuer is obligated to pay a specified interest rate on the principal amount at regular intervals until maturity, in addition to repaying the principal.

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money, or, for corporations, the price paid for the use of borrowed capital.

Contingent Liability

A potential financial obligation that may arise in the future depending on the outcome of an uncertain event or situation.