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Exchange unification and European Monetary Union

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

What does devaluation mean?

a)

Loss of the nominal value of a current currency against other foreign currencies

b)

It is to exceed the income, in a certain period.

c)

Very high inflation, in which prices rise rapidly as the currency loses its value.

2.

what is inflation?

a)

Are earnings that emigrants send to their country of origin.

b)

Macroeconomic measure that expresses the monetary value of the production of goods and services in a country.

c)

Generalized increase in average prices in a country for a given period of time.

d)

None of the above

3.

Is the quality of assets to be converted into cash immediately without significant loss of value

a)

Speculation

b)

Redistribution

c)

Liquidity

4.

Generalized decrease in economic activity in a country or region, measured by the decline, in annual rate, of the real gross domestic product (GDP), over a prolonged period

a)

I don´t know

b)

Recession

c)

Inflation

d)

GDP

5.

If, for example, the only measure that is adopted is a devaluation without it being accompanied by measures of fiscal and monetary discipline, what happened?

a)

doesn´t say

b)

will be an increase in prices in the short term,

c)

the GDP increases

d)

we have an equilibrium

6.

Is the European Economic and Monetary Union (EMU) is a system made up of several European Union countries that share the same market, currency, and monetary policy?

a)

True

b)

False

7.

The origin of the Economic and Monetary Union was in

(a)  

8.

Who is part of the European System of Central Banks (ESCB)?

a)

European Central Bank

b)

All the national central banks of the countries of the European Union

c)

IMF

d)

WB

9.

When and where was the European Central Bank (ECB) created?

a)

On June 1st, 1998

b)

On may 1st, 1998

c)

In Frankfurt, Germany

d)

In Mexico City

10.

How many countries belong to the euro, some of them are?

a)

Germany, France, Greece, Slovakia, and Luxembourg.

b)

15 countries

c)

19 countries

d)

Toluca, Russia and Dubai

11.

When is the origin of the Economic Monetary Union tracked?

a)

1970

b)

1967

c)

1951

d)

1952

12.

How many phases took the transition of the EMU?

a)

4

b)

3

c)

5

d)

2

13.

When is the euro set as a legal tender currency?

a)

March 2002

b)

March 2003

c)

February 2003

d)

February 2002

14.

When was the euro born?

a)

1993

b)

1990

c)

1995

d)

2000

15.

Which are the principles of the introduction of the euro?

a)

Legal equivalence between euro and national currency units

b)

No obligation, no prohibition

c)

Countity of contracts

d)

Everybody must be happy

16.

The exchange unification involves having a single exchange rate in a single currency management system

a)

True

b)

False

17.

What is the difference between the ceiling and the floor in exchange rate unification?

a)

Limits Maximum and minimum

b)

Exchange control

c)

Doesn´t say

d)

Monetary authority

18.

What is a currency?

a)

Country that has problem with their currency

b)

Currencies other than those of the country of origin.

c)

Macroeconomic measure that expresses the monetary value of the production of goods and services in a country during a specified period of time.

d)

Mexico

19.

"Difficulty of not knowing who ends up accessing the currencies" Is a problem of some established systems?

a)

True

b)

Falso

20.

In this way, the unification of the exchange rate will be a release from exchange control.

a)

True

b)

False