According to the theory of optimal currency areas, there are gains to be achieved from sharing a currency across national boundaries.These gains include
A) higher transactions costs.
B) greater uncertainty for investors.
C) monetary policies run by central banks of member nations.
D) enhanced competition.

Question

Quizplus · Accepted Answer

Enhanced competition is a gain from sharing a currency across national boundaries, as it can reduce transaction costs, lower uncertainty for investors, and necessitate a centralized monetary policy, thereby fostering a more competitive and integrated market environment.

According to the Theory of Optimal Currency Areas, There Are