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Chapter 32: Problem 24

If you were going to spend time in Italy, France, and Germany, you would be paying for things with (LO1) a) lira, francs, and marks b) dollars c) euros d) gold

Short Answer

Expert verified
c) euros

Step by step solution

01

Understanding the options

Let us analyze each of the given options: a) Lira, Francs, and Marks: These are the historic currencies of Italy, France, and Germany, respectively. They were in use before the introduction of a common currency in the European Union. b) Dollars: Dollar is mainly associated with the United States and countries that use the US Dollar as their official or secondary currency. It is not a currency that is officially used in Italy, France, or Germany. c) Euros: Euro is the common currency used by most of the European Union member countries. Both France and Germany are founding members of the EU, and Italy is a significant member of the EU as well. d) Gold: Gold is a valuable metal that is used as a store of value and for investment purposes, and not as a general currency for transactions in daily life.
02

Selecting the correct currency

After analyzing the options, we can conclude that the Euro (Option c) is the correct answer. The Euro is the official currency of all three countries mentioned in the exercise (Italy, France, and Germany). So, if you were going to spend time in these countries, you would be paying for things using euros.

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Most popular questions from this chapter

The total of our current and capital accounts (LO2) a) will always be zero b) will always be negative c) will always be positive d) may be positive or negative

Which one of the following statement is the most accurate? (LO4) a) As a percentage of GDP, the United States has the highest current account surplus of any nation. b) As a percentage of GDP, the United States has the highest current account deficit of any nation. c) As a percentage of GDP, our current account deficit is roughly the same as it was 10 years ago. d) Our current account deficit is rising at an unsustainable pace.

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Which is the most accurate statement? In early 2008 there was strong evidence that the ( \(\mathrm{OO})\) a) yuan and yen were overvalued against the dollar b) yuan and yen were undervalued against the dollar c) yuan was undervalued against the yen d) yen was undervalued against the yuan
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