Which of the following is NOT one of the determinants of the gains of adopting a single currency?
A)A well-synchronized business cycle involving all member countries
B)The possibility of factors of production to freely move across borders
C)The willingness and ability of member countries to design policies to address regional imbalances that may develop
D)Widening the common market by allowing other countries to join
E)None of the above.

Question

Quizplus · Accepted Answer

All other determinants listed (A, B, and C) are factors that contribute to the gains of adopting a single currency. However, widening the common market to include other countries is not a determinant of these gains. In fact, it may even pose challenges to the existing currency union by introducing new economic and political considerations.

Which of the Following Is NOT One of the Determinants