Which of the Following Is NOT a Benefit of a Monetary

question 12

Multiple Choice

Which of the following is NOT a benefit of a monetary union?

• A)Elimination of exchange rate uncertainty
• B)Reduced transactions costs
• C)Ability to absorb economic shocks
• D)Enhanced efficiency and competitiveness

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his works "The Wealth of Nations," a cornerstone of modern economic theory.

Invisible Hand

A metaphor introduced by Adam Smith to describe the unintended social benefits of individual self-interest actions.

Free Market

An economic system in which prices for goods and services are determined by the open market and consumers, where the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Free Trade Advocates

Individuals or groups who support the removal of trade barriers between countries to facilitate the exchange of goods and services.