In Spite of Less-Than-Optimal Currency Area Criteria at Present in the Eurozone

question 121

Multiple Choice

In spite of less-than-optimal currency area criteria at present in the Eurozone, some believe that the existence of a working currency union will result in:

• A) an improvement in the criteria, as the union members are committed to work for more integration.
• B) a gradual deterioration of the union, as members seek benefits from having an autonomous monetary policy.
• C) tension and a power struggle over which will be the dominant economy in the union.
• D) more delay in implementing needed reforms.

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Definitions:

Merchant Seller

A business or individual that sells goods to consumers in the course of their trade or business.

Nonmerchant Buyer

An individual or entity that purchases goods but does not regularly deal in goods of that kind, thus lacking certain protections and obligations under commercial law.

Risk of Loss

A legal term denoting the liability for damage to goods in a sales contract, determining who bears the risk if the goods are damaged or lost.

Merchant

A person who deals in goods of the kind sold in the ordinary course of business or who otherwise claims to have knowledge or skills peculiar to those goods.