Question

Members of the European Monetary Union A. adopt a common currency called the euro. B. float their domestic currency exchange rate with both the euro and the rest of the world. C. can continue to use their own domestic currency but are required to hold a stipulated amount of a common currency. D. cannot hold reserves of the common currency.

Answer 1

A. adopt a common currency called the euro

Step-by-step explanation:

A monetary union:

1. adopts a common currency called the euro

2. hold reserves in the common currency

3. Monetary policy is jointly determined