A key advantage of adopting the euro is that it
A) helps in reduction of competition in Europe.
B) has prevented the development of a highly liquid pan-European capital market.
C) lowers foreign exchange and hedging costs in Europe.
D) insulates Europe from international competition.
E) increases the range of investment options open to institutions only.

Question

Quizplus · Accepted Answer

Adopting the euro lowers foreign exchange and hedging costs by eliminating the need for currency conversion among eurozone countries, facilitating easier and more cost-effective trade and investment.

A Key Advantage of Adopting the Euro Is That It