Chapter 20: Inside The Euro Zone

5 Questions

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Chapter 20: Inside The Euro Zone

Test your knowledge of EU politics.


Questions and Answers
  • 1. 
    Monetary policy is concerned with 
    • A. 

      The distribution of goods and services

    • B. 

      The consumption of goods and services

    • C. 

      How governments raise revenues and how they spend money

    • D. 

      How governments control the value of currencies and deal with problems such as inflation

  • 2. 
     When was the euro launched? 
    • A. 

      1999

    • B. 

      2002

    • C. 

      2004

    • D. 

      2007

  • 3. 
    Which of the following statements is true of public support for the euro since 2006? 
    • A. 

      It has remained fairly steady at about 70-80%

    • B. 

      It has remained fairly steady at about 50-60%

    • C. 

      It started low and has grown dramatically

    • D. 

      It has fluctuated wildly

  • 4. 
    Which of the following pairs of countries is not part of the euro zone?
    • A. 

      Czech Republic and Slovakia

    • B. 

      Latvia and Lithuania

    • C. 

      Bulgaria and Romania

    • D. 

      Britain and Spain

  • 5. 
    All but one of the following are advantages of a state or group of states having a world-leading currency. Mark the exception. 
    • A. 

      It makes it harder for states to run foreign trade deficits

    • B. 

      It provides more opportunities for political leadership

    • C. 

      Other countries hold more of their foreign reserves in that currency, so helping to maintain its value

    • D. 

      It allows a state to borrow in its own currency, making it less hostage to fluctuations in the value of that currency