Which Would Be Easier to Reverse? for Denmark, Which Now

question 95

Multiple Choice

Which would be easier to reverse? For Denmark, which now pegs its national currency to the euro, to choose monetary autonomy and abandon its peg, or for Italy to switch back from the euro to the lira?

• A) Italy, because all it has to do is cash euros for lire
• B) Italy, because it can change over to an electronic payments system
• C) Denmark, because it would only have to return all the euros in its treasury
• D) Denmark, because it would not have to change its currency, accounting structure, nor reprint domestic currency

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Definitions:

Financing Section

This term refers to the part of a financial report or business plan that outlines how a company funds its operations, including debt, equity, and other financing sources.

Treasury Stock

Shares that were once a part of the outstanding shares and have been bought back by the company.

Statement of Cash Flows

A report detailing how variations in balance sheet accounts and income levels influence cash and cash equivalents.

Operating Activities

Activities that are directly related to the running of a business and its day-to-day functions, generating most of its revenue and expenses.