If several nations decide to adopt and use a common currency, then each of these nations would lose the following, except
A) the ability to set its own interest rates.
B) the ability to set its own tax rates.
C) control of its own exchange rate.
D) the use of "external adjustment" tools to deal with current-account balance problems.

Question

Quizplus · Accepted Answer

When nations adopt a common currency, they give up control over their exchange rates and the use of "external adjustment" tools to deal with current-account balance problems. They also lose some control over their interest rates. However, they do not lose the ability to set their own tax rates.

If Several Nations Decide to Adopt and Use a Common