The advent of the euro marks the first time that sovereign countries have voluntarily given up their
A)national borders to foster economic integration.
B)monetary independence to foster economic integration.
C)fiscal policy independence to foster economic integration.
D)national debt to foster economic integration.

Question

Quizplus · Accepted Answer

The establishment of the euro involved the adoption of a common currency by multiple countries, which necessitated relinquishing their monetary independence to some extent. The countries participating in the euro zone gave up control over their individual monetary policies and entrusted the European Central Bank (ECB) to set monetary policy for the region. While countries still retain their fiscal policy independence, the common currency requires them to coordinate their fiscal policies to ensure macroeconomic stability within the euro zone.

The Advent of the Euro Marks the First Time That