国际金融题库第21章.docVIP

International Economics, 10e Global Edition (Krugman/Obstfeld/Melitz) Chapter 21 Optimum Currency Areas and the Euro 21.1 How the European Single Currency Evolved 1.  The European Economic and Monetary Union A)  produced a single government for handling European affairs. B)  set up a single currency and sole bank for European economic monetary policy. C)  created the Common Agricultural Pact. D)  eliminated all barriers to trade such as tax differentials between borders. E)  eliminated all local currencies in Western Europe. Answer:  B Page Ref: 666-673 Difficulty: Easy  2.  The birth of the Euro A)  resulted in floating exchange rates between all EMU member countries. B)  resulted in non currency board exchange rates between all EMU member countries. C)  resulted in flexible exchange rates between all EMU member countries. D)  resulted in crawling-peg exchange rates between all EMU member countries. E)  resulted in fixed exchange rates between all EMU member countries. Answer:  E Page Ref: 666-673 Difficulty: Easy  3.  Which of the following is TRUE? A)  All Western European countries are part of the EMU. B)  No Western European countries are part of the EMU. C)  Not all Western European countries are part of the EMU. D)  Originally, 20 countries joined the EMU on January 1999. E)  All European countries are part of the EMU. Answer:  C Page Ref: 666-673 Difficulty: Easy  4.  The EMU created a currency area with more than A)  500 million consumers. B)  250 million consumers. C)  200 million consumers. D)  about a billion. E)  300 million consumers. Answer:  E Page Ref: 666-673 Difficulty: Easy  5.  The EU countries were prompted to seek closer coordination of monetary policies and greater exchange rate stability in order A)  both to enhance Europes role in the world monetary system and to turn the European Union into a truly unified market. B)  to turn the European Un