26. Which of the following is NOT a benefit of a monetary union? A. elimination of exchange rate uncetainty B. reduced transaction costs C. ability to absorb asymmetric economic shocks D, enhanced efficiency and competitiveness 27 Canada's competitive position will A. strengthen when the dollar appreciates more than is warranted by PPP B. not change when the dollar appreciates more than is warranted by PPP C. weaken when the dollar appreciates more than is warranted by PPP D. weaken when the dollar depreciates more than is warranted by PPP Intervention in the foreign exchange market is the process of A. a central bank requiring t B. commercial banks in different countries coordinating efforts to stabilize one or more currencies C. a central bank buying or selling its currency to influence its value. D, the government of a country prohibiting transactions in one or more curencies 28. level. 29. Under the Bretton Woods system: A. there was an explicit set of rules about the conduct of international trade policies B. each country was responsible for maintaining its exchange rate within 2.5% ofthe adopted par value by buying selling foreign currencies as necessary C. the U.K. pound sterling was the only currency that was fully convertible to gold D. each country established a par value in relation to the U.S. dollar, which was pegged to gold at $35 per ounce Which of the following statements is NOT true about the euro? A. was introduced in 1999 B. precipitated the emergence of continent-wide capital markets in Europe C. competes with the American dollar D. is used by all European countries 30