The First Step in Making the Euro the Single Currency

question 31

Multiple Choice

The first step in making the euro the single currency of Europe was:

• A)taking steps to make all of the currencies in use in Europe have equal value.
• B)linking the value of all currencies in Europe to the USD.
• C)the institution of several policies including the freeing of capital flow among member states.
• D)obtaining the approval of the International Monetary Fund.

---

Definitions:

Balloon Note

A type of loan that has a large or "balloon" payment due upon maturity, typically after a series of lower regular payments.

Maturity

The final payment date of a loan or financial instrument at which point the principal (and all remaining interest) is due to be paid.

Covenants

Agreements or promises in a formal loan or bond agreement that cover certain conditions, actions, or restrictions taken by the borrower.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.