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Economic Integration (id: 713cbbbcf)

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admin 发表于 2024-7-27 17:00:58 | 显示全部楼层 |阅读模式
本题目来源于试卷: Economic Integration,类别为 IB经济学

[单选题]
The advantages of jol58,f2 qi9-fk hlxfi uny)dx3 ining(9o *xdftm*c(ymdrr ) a monetary union include all the following except

A. The monetary union's central bank conducts monetary policy
B. Increased certainty for importers and exporters
C. Price transparency increases
D. The level of inward investment increases


参考答案:  A


本题详细解析:
A

Explanation:
Joining a monetary union eliminates a country's ability to conduct its monetary policy. For example, the European Central Bank (ECB) conducts monetary policy for the Eurozone. ECB actions affect all countries in the Eurozone. This lack of customisation poses a disadvantage rather than an advantage for individual countries.

These answer choices indicate advantages of joining a monetary union:

(Choice B) Exchange rate fluctuation creates uncertainty among exporters and importers. The adoption of a single currency promotes certainty, increasing international trade.

(Choice C) Price transparency refers to the ability of consumers and firms to compare prices. If countries join the monetary union and adopt a single currency, exchange rate conversions will not be necessary, making it more convenient for consumers and firms.

(Choice D) Inward investments mean investment from outsiders/non-members towards a member country. Joining a monetary union promotes certainty due to the absence of currency risk and hence promotes inward investment.

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