# Which of the following is a problem for monetary policy in a currency union ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Which of the following is a problem for monetary policy in a currency union ? Correct Answer: D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others monetary policy must be one size fits all. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following is a problem for monetary policy in a currency union ?

Direct Answer & Quick Reference

The correct option is **D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others monetary policy must be one size fits all**.

A. Money supply is more difficult to control in a currency union.

B. The inflation-unemployment trade-off is more unstable in a currency union

C. All of these answers describe problems for monetary policy in a currency union

D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others monetary policy must be one size fits all **(Correct Answer)**

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Verified Key: D. The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others monetary policy must be one size fits all
Solved by 3,593+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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