An Optimum Currency Area Has All of the Following Except

question 33

Multiple Choice

An optimum currency area has all of the following except:

• A)zero cost of official interventions in foreign exchange markets
• B)No cost of hedging
• C)zero cost of exchanging one currency for another to pay for imports of goods and tourist services
• D)a common currency for all countries

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Definitions:

Production Process

The activities, operations, and methodologies used in transforming raw materials into finished goods or services.

Market-Determined Quantity

The quantity of a good or service established through the interaction of supply and demand in a marketplace.

Coal Mine Pollution

Environmental damage caused by the mining and processing of coal, including air and water pollution.

Marginal Social Benefit

The extra benefit that society receives from consuming an additional unit of a good or service.