The pooling of sovereignty to create a common currency and a single monetary system for members in a region is a(n) _____ .
A) trade pact
B) regional currency union
C) international monetary system
D) floating exchange rate

Question

Quizplus · Accepted Answer

The pooling of sovereignty to create a common currency and a single monetary system for members in a region is called a regional currency union. Examples of regional currency unions include the eurozone and the Eastern Caribbean Currency Union. Option A refers to a mutual agreement to reduce or eliminate trade barriers between two or more countries. Option C refers to a system of rules, institutions, and procedures that regulate international trade and financial transactions. Option D refers to an exchange rate that is determined by supply and demand in the foreign exchange market, without any government intervention.

The Pooling of Sovereignty to Create a Common Currency and a Single