In a(n)______,similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy.
A) managed currency zone
B) open exchange regime
C) optimal currency area
D) free trade area
E) advanced monetary zone

Question

Quizplus · Accepted Answer

The concept of optimal currency area suggests that a group of countries should share a single currency and exchange rate when there are similarities in their economic structures, making it feasible to use a single monetary policy as a tool for macroeconomic management. This is a more specific and relevant term than the other options given.

In A(n)______,similarities in the Underlying Structure of Economic Activity Make