Chapter 20 Multiple choice questions

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When did economic and monetary union become an objective of the EC?

1957 correct incorrect

1969 correct incorrect

1985 correct incorrect

1992 correct incorrect

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What is meant by an 'economist' approach to monetary union?

Monetary union should only be attempted with a strict approach to monetary policy correct incorrect

Monetary union can be compatible with a wide range of fiscal policies correct incorrect

Monetary union should only be attempted after some convergence of economic policies is achieved correct incorrect

Monetary union should occur before convergence of economic policies correct incorrect

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Why did the ' snake in the tunnel' not lead to monetary union after 1973?

Structural divergence in European economies correct incorrect

Pressure from a low US dollar correct incorrect

Currency speculation correct incorrect

All of the above correct incorrect

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What did the Delors report propose?

An end to exchange rate targets until member state economies had converged correct incorrect

Maintaining the EMS with wider bands of exchange rate fluctuation correct incorrect

Increasing convergence in economic policy, creation of the European Central Bank and the introduction of a single currency correct incorrect

None of the above correct incorrect

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How did the French and German positions on monetary union differ?

Germany wanted a highly independent European Central Bank and strong monetary discipline correct incorrect

Germany wanted the European Central Bank to coordinate closely with national finance ministers correct incorrect

France preferred the name 'euro' for the new currency, while Germany preferred 'ecu' correct incorrect

France favoured a rigid application of the budget deficit limits correct incorrect

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Which four member states did not participate in the euro when it was launched in 1999?

Britain, Denmark, Portugal, and Greece correct incorrect

Britain, Portugal, Sweden, and Greece correct incorrect

Britain, Denmark, Sweden, and Portugal correct incorrect

Britain, Denmark, Sweden, and Greece correct incorrect

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Which of the following is not part of the convergence criteria?

Having no budget deficit for three years running correct incorrect

Maintaining a level of inflation not more than 1.5% above an agreed baseline correct incorrect

Maintaining interest rates not more than 2% above an agreed baseline correct incorrect

Maintaining exchange rates within the ERM band for two years correct incorrect

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True or false: The 2004 enlargement committed all of the new member states to becoming members of the single currency.

False correct incorrect

True correct incorrect

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Which Euro Group state was the first to receive financial assistance from the EU in an attempt to stabilize a serious national economic crisis?

Portugal correct incorrect

Latvia correct incorrect

Ireland correct incorrect

Greece correct incorrect

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True or False: Post-crisis reforms in the Eurozone have tended to reflect French and debtor state preferences.

True correct incorrect

False correct incorrect