Which of the following is true of the euro?
A)It increases exchange-rate risk for business deals between member nations.
B)It increases transaction costs.
C)It makes prices between markets more transparent.
D)It is not accepted among merchants in France,Germany,and Italy.

Question

Quizplus · Accepted Answer

The euro makes prices between markets more transparent as it eliminates currency exchange rate fluctuations among the member nations. This allows consumers to easily compare prices and products across countries within the eurozone.

Answer: A and B are incorrect.
 The euro actually reduces exchange-rate risk for business deals between member nations as it eliminates currency conversion costs and fluctuations. Transaction costs may initially have increased due to the transition to the euro, but they have since decreased over time.

Answer: D is incorrect.
 The euro is widely accepted among merchants in France, Germany, Italy, and other member nations of the eurozone.

Which of the Following Is True of the Euro