1. Which of the following would suggest that the United Kingdom (UK) would benefit by joining the European Monetary Union? A) The UK trades more with the U.S. than Europe. B) The UK economy tends to have recessions at the same time as France and Germany. C) People in the UK tend not to move far away from their hometowns D) Most UK tax revenue is spent in the UK E) None of the above 2. A currency board: A) is responsible for maintaining a fixed exchange rate. B) has no monetary policy independence. C) cannot run out of reserves in a speculative attack/currency crisis. D) none of the above. E) a. b. and c. 3. Which one of the following is an impossible combination according to the Trilemma tradeoff? A) Fixed exchange rate, no capital controls, monetary policy autonomy. B) Floating exchange rate, some capital controls, monetary autonomy. C) Fixed exchange rate, capital controls, no monetary autonomy. D) Floating exchange rate, no capital controls, monetary autonomy. E) All of the above are possible 4. Which of the following would make it difficult for Greece to function well as part of the monetary union in Europe? A) low labor mobility. B) shocks that are symmetric. C) fiscal transfers from the rest of Europe. D) extensive trade integration with the rest of Europe. E) all of the above. 5. The Gold Standard: A) Is followed by the U.S. today. B) Makes it difficult to maintain internal balance. C) Helps maintain external balance by allowing the nominal exchange rate to adjust. D) All of the above. E) None of the above