Which of the following is an advantage to having a common currency in the European Union?
Is allows the worth of the currency to change depending on the country
It allows each government to take its own policy regarding currency
It allows for easier trading and investment
It makes it impossible for member countries to suffer economically
The correct answer is:
- It allows for easier trading and investment
Having a common currency in the European Union, such as the Euro, eliminates the need for currency conversion and reduces transaction costs. This simplifies trade and investment among member countries, as businesses and individuals can easily engage in cross-border transactions without worrying about exchange rates or fees.