All of the following are true of the euro EXCEPT that it ________.
A) eliminates exchange rate risk for business deals between members using the euro
B) reduces transaction costs by eliminating the cost of converting currencies
C) makes prices between markets more transparent
D) does not allow France, Germany, and Italy to use the euro

Question

Quizplus · Accepted Answer

The euro allows all European Union members to use it, including France, Germany, and Italy. Therefore, option D is false. Options A, B, and C are true, as the euro helps businesses to avoid exchange rate risk and lowers transaction costs, while also increasing transparency in pricing.

All of the Following Are True of the Euro EXCEPT