A. customs union
B. free trade area
C. reciprocal trade agreement
D. monetary union
Related Mcqs:
- As of 2002, the ________ became the official currency union of the European Monetary System ?
A. dollar
B. mark
C. franc
D. euro - Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
A. relatively high; relatively large
B. relatively high; relatively small
C. relatively low ; relatively large
D. relatively low ; relatively small - The main features of the European Monetary system are ?
A. The ECU
B. currency swap agreement between member
C. the exchange rate mechanism
D. all of the above - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - Which of the following is a problem for monetary policy in a currency union ?
A. Money supply is more difficult to control in a currency union.
B. The inflation-unemployment trade-off is more unstable in a currency union
C. All of these answers describe problems for monetary policy in a currency union
D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others monetary policy must be one size fits all - A monetary union means ________, ________ and ________?
A. permanently fixed capital movements floating exchange rates a fixed structure of interest rates
B. permanently fixed exchange rates, free capital movements, a single interest rates
C. a common currency a single central bank, common monetary policy
D. a common currency floating exchange rates common monetary policy - Which country is not a member of the European Union ?
A. Spain
B. Germany
C. France
D. Iceland - The Common Agricultural Policy of the European Union has ?
A. increase American farm exports to the EU
B. decrease American farm exports to the EU
C. lowered the price of American farm exports to the EU
D. not affected the price of American farm exports to the EU - The European Union has achieved all of the following except ?
A. adopted a common fiscal policy for member nations
B. established a common system of agricultural price supports
C. disbanded all tariffs between its member countries
D. levied common tariffs on products imported from nonmembers - The European Union is an example of a/an ?
A. customs union
B. economic union
C. common market
D. free trade area
