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Which form of economic grouping establishes a central monetary authority and issues a common currency?
  • a)
    Economic unions
  • b)
    Free trade areas
  • c)
    Monetary unions
  • d)
    Customs unions
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which form of economic grouping establishes a central monetary authori...
A monetary union establishes a central monetary authority that determines monetary policy for all participating countries. It also issues a common currency to be circulated among the member countries. An example of a monetary union is the European Union, which introduced the single European currency (the Euro) in 1999.
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