Question

The Euro, the common currency of the European Union, facilitates trade and finance by

O eliminating exchange rate differences between member countries
O guaranteeing economic stability to member nations
O banning the U.S. dollar in member countries
O enabling different member economies to act as one

Answer 1

The euro simplifies economic interactions within the European Union by eliminating the need for currency conversion between member nations, though it does not guarantee economic stability or ban other currencies like the U.S. dollar.

Step-by-step explanation:

The common currency of the European Union, the euro, facilitates trade and finance primarily by eliminating exchange rate differences between member countries. This allows for easier trade and financial transactions as there is no need to constantly convert currencies between nations. The euro aids in the elimination of barriers to the mobility of goods, labor, and capital across Europe, and though initially resisted, it has become widely accepted amongst EU members. Notably, the introduction of the euro does not guarantee economic stability, ban the U.S. dollar in member countries, or allow different member economies to act precisely as one, but it significantly simplifies many economic interactions.