Beginning in 1995, most countries in the European Union started to switch to a common currency. The values of different European currencies were linked to the euro. Countries in the European Union could then trade without converting currency. Why would adopting a common currency be helpful for European traders?
A. European traders can import more goods because the euro is strong
B. Poorer countries in Europe became richer because their currency was converted to the euro
C. Wages will be the same in each European country because everyone is being paid in the same currency
D. Exchange between European countries is easier because they are using the same currency ****
Am I correct?
Yes, you are correct.
The Euro has also made it a lot easier for travelers to go from one country to another in Europe.
Thank you :)
You're welcome.
Yes, you are correct! Option D is the correct answer.
By adopting a common currency like the euro, European traders benefit from easier exchange between European countries because they are using the same currency. This eliminates the need to convert currencies, reducing transaction costs and eliminating uncertainty related to exchange rates. It streamlines trade and facilitates economic integration and cooperation between the countries in the European Union.