Question

When western European countries adopted the Euro, they were hoping to ensure the stability of a _______________ while still enjoying the flexibility of a __________________.

A. floating rate system / fixed rate system
B. foreign exchange rate / common currency
C. common currency / regional monetary fund
D. fixed rate system / floating rate system

Answer 1

The correct answer is B. foreign exchange rate / common currency.

Step-by-step explanation:

The correct answer is B. foreign exchange rate / common currency.

When western European countries adopted the Euro, they were hoping to ensure the stability of a foreign exchange rate while still enjoying the flexibility of a common currency. By adopting a common currency like the Euro, these countries eliminated foreign exchange risk, ensuring that the value of the Euro would remain the same across different European nations.