Economics Multiple Choice Question – 5 June 2022

A group of countries introduce a single common currency to replace their national currencies.

What will result from this policy?

Select ONE answer:

1. easier price comparisons between countries
2. higher transaction costs
3. increased interest rate differentials
4. identical prices in all countries

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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