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Quiz - Worksheets - The euro - Europe - Economics bank - Virtual US Bank of Biz/ed

Europe - The euro

Quiz - The euro - how, where, when and what?

1. For those countries taking part in the euro, when did the final changeover to euro banknotes take place?

(a) * 2001
(b) * 2002
(c) * 2003
(d) * 2004

       
2. When did the United Kingdom (UK) join the Exchange Rate Mechanism (ERM)?

(a) * 1987
(b) * 1989
(c) * 1990
(d) * 1992

       
3. When did the UK leave the ERM?

(a) * 1987
(b) * 1989
(c) * 1990
(d) * 1992

       
4. What was the fixed rate against the Deutschmark when the UK was a member of the ERM?

(a) * DM2.85
(b) * DM2.90
(c) * DM2.95
(d) * DM3.05

   
5. If the exchange rate was approaching its upper limit in the ERM, which of the following policies may be appropriate?
(Select one or more answers)

(a) * Increasing the rate of interest
(b) * Buying sterling and selling other currencies
(c) * Reducing the rate of interest
(d) * Selling sterling and buying other currencies

       
6. If the exchange rate was approaching its lower limit in the ERM, which of the following policies may be appropriate?
(Select one or more answers)

(a) * Increasing the rate of interest
(b) * Buying sterling and selling other currencies
(c) * Reducing the rate of interest
(d) * Selling sterling and buying other currencies

       
7. Which of the following was not one of the convergence criteria set by the Maastricht Treaty in 1993?

(a) * Inflation should be no more than 1½% above the average inflation rate of the lowest 3 countries
(b) * The currency should have been in the normal bands of the ERM for at least 2 years without realignment or excessive intervention
(c) * The budget deficit should be no more than 3% of GDP at market prices
(d) * Levels of economic growth in each country should be within 2% of the average level of the highest 5 countries

       
8. What does ECB stand for?
(Type your answer)

  *

       
9. Which of the following is not an argument in favor of a single currency?

(a) * A single monetary policy results
(b) * There is increased transparency of prices
(c) * Exchange rate uncertainty is eliminated
(d) * Greater efficiency should be encouraged

       
10. Where is the ECB located?

(a) * Maastricht
(b) * Brussels
(c) * Frankfurt
(d) * Strasbourg

       
11. How many countries are currently part of the Single European Currency?

(a) * 10
(b) * 11
(c) * 12
(d) * 13
(e) * 14