Which of the Following Is Not a Criterion for an Optimal

question 26

Multiple Choice

Which of the following is not a criterion for an optimal currency area-that is,two or more nations benefiting from adopting a common currency?

• A) labor mobility among the countries
• B) a substantial level of imports and exports among the countries
• C) income redistribution among the countries through transfer payments
• D) common economic shocks among countries
• E) approximately equal levels of national income

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those of common shareholders.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a claim on a portion of the company’s profits through dividends.

Dividend

a distribution of a portion of a company's earnings to its shareholders, usually in cash or additional shares.

Convertible Preferred Stock

Preferred stock that gives the owner the option of converting those preferred shares into a stated number of common shares.