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Quiz about Economic and Monetary Union in Europe

Economic and Monetary Union in Europe Quiz

Economic and Monetary Union, including the creation of the single currency, the Euro, was the main objective of the European Community and perhaps its greatest achievement.

A multiple-choice quiz by Beatka. Estimated time: 5 mins.

Author
Beatka

Time
5 mins

Type
Multiple Choice

Quiz #
97,082

Updated
Dec 03 21

# Qns
15

Difficulty
Tough

Avg Score
8 / 15

Plays
800

One at a Time - Single Page - Timed Game

Question 1 of 15

1. Who was the author of the plan, the aim of which was to achieve the Economic and Monetary Union by 1980? Hint

Schuman

Werner

Monnet

Adenauer

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Question 2 of 15

2. When was the European Monetary System (EMS) launched? Hint

1968

1981

1979

1952

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Question 3 of 15

3. Whose report proposed a three-stage approach to EMU? Hint

Werner Report

Delors Report

Tindemans Report

Schuman Plan

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Question 4 of 15

4. When did the first stage of EMU begin? Hint

1994

1983

1999

1990

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Question 5 of 15

5. Which stage of EMU provided for the introduction of a single currency?
Hint

the second one

none

the first one

the third one

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Question 6 of 15

6. Which institution was established at the beginning of Stage II? Hint

European Monetary Institute

European Investment Bank

European Central Bank

European Development Bank

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Question 7 of 15

7. According to the Treaty, member states wishing to take part in Stage III of EMU had to meet certain criteria, so called convergence criteria. Which was NOT one of them? Hint

high economic growth

a public debt ratio not exceeding 60 percent of GDP

budget deficit of less than 3 percent of GDP (gross domestic product)

an average inflation rate not exceeding by more than 1.5 percent that of 3 best-performing member states

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Question 8 of 15

8. At the beginning of stage III of EMU, the EMI was replaced by the European System of Central Banks (ESCB).

True

False

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Question 9 of 15

9. Who made the decision to name a single currency the Euro? Hint

European Central Bank

European Commission

European Council

European Parliament

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Question 10 of 15

10. What is the name of the cross-border payment system, which started to operate in 1999? Hint

TAIEX

TARGET

TARIC

TARIFF

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Question 11 of 15

11. Who became the first president of the European Central Bank? Hint

Alexandre Lamfalussy

Wim Duisenberg

Jean-Claude Trichet

Philippe Maystadt

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Question 12 of 15

12. When did the Euro banknotes and coins start to circulate? Hint

January 1, 2003

July 1, 2002

January 1, 2002

December 1, 2001

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Question 13 of 15

13. Where is the European Central Bank located? Hint

Luxembourg

Basel

Frankfurt

London

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Question 14 of 15

14. What is the name of the Council of Finance Ministers of EU member states participating in the Eurozone? Hint

ECOFIN-X

Euro-X

EUROCOIn

ECOEURO

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Question 15 of 15

15. Which country didn't take part in the Stage III of EMU for political reasons? Hint

Greece

Portugal

Switzerland

Sweden

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Quiz Answer Key and Fun Facts

1. Who was the author of the plan, the aim of which was to achieve the Economic and Monetary Union by 1980?

Answer: Werner

Pierre Werner was a former prime minister of Luxembourg and the chairman of the European Community's Committee on Monetary Union in 1970. His plan didn't materialise at that time but served as a basis for the future Economic and Monetary Union.

2. When was the European Monetary System (EMS) launched?

Answer: 1979

The European Monetary System (EMS) was established in 1979 to secure a zone of monetary stability in Western Europe. Its core elements were the Exchange Rate Mechanism (ERM) and the European Currency Unit (ECU).

3. Whose report proposed a three-stage approach to EMU?

Answer: Delors Report

In June 1988 European Council charged the Delors Committee with proposing concrete steps for achieving EMU. In June 1989 in Madrid the European Council endorsed the Delors report as a basic blueprint for EMU. The three-stage plan for EMU was adopted by the Maastricht Treaty in 1991.

4. When did the first stage of EMU begin?

Answer: 1990

It began on July 1, 1990. It provided for a free movement of capital between member states, closer coordination of economic policies and closer cooperation between central banks.

5. Which stage of EMU provided for the introduction of a single currency?

Answer: the third one

Stage III began on 1 January 1999. It provided also for the establishment of a European Central Bank and absolutely fixed (that is, 'locked') exchange rates. 11 member states of the EU took part in it.

6. Which institution was established at the beginning of Stage II?

Answer: European Monetary Institute

The task of the EMI was to make technical preparations for Stage II and monitor member states' compliance with the requirements for participation in it. The EMI council consisted of national central bank governors, but its president was selected from outside the governors circle.

The EMI was located in Frankfurt and its president was Alexandre Lamfalussy, a former President of the Bank of International Settlements (BIS) in Basel.

7. According to the Treaty, member states wishing to take part in Stage III of EMU had to meet certain criteria, so called convergence criteria. Which was NOT one of them?

Answer: high economic growth

Another criterion was a long-term nominal interest rate which does not exceed by more than two percentage points that of the three best performing member states in terms of price stability.

8. At the beginning of stage III of EMU, the EMI was replaced by the European System of Central Banks (ESCB).

Answer: True

ESCB consists of European Central Bank and national central banks. It formulates member states' single monetary policy.

9. Who made the decision to name a single currency the Euro?

Answer: European Council

This decision was made by the European Council in Madrid in 1995. It decided also on the so-called changeover timetable, i.e. switching to the single currency.

10. What is the name of the cross-border payment system, which started to operate in 1999?

Answer: TARGET

Cross-border payment system was approved by the European Council in Madrid. It started to operate on January 1, 1999.

11. Who became the first president of the European Central Bank?

Answer: Wim Duisenberg

The ECB was set up in 1998. It replaced the EMI, and its first president was Wim Duisenberg, a Dutch national.

12. When did the Euro banknotes and coins start to circulate?

Answer: January 1, 2002

The Euro is the currency in 12 member states of the EU. The legal tender status of national banknotes and coins ceased on July 1, 2002. (in consequence of the 'locked' exchange rates, the Euro was the actual currency of the original 11 participating countries from January 1999 - and also of Greece from January 2001 onwards, though until January 1, 2002 the Euro was still denominated in the old national currencies).

13. Where is the European Central Bank located?

Answer: Frankfurt

The European Central Bank, just like its precursor, the European Monetary Institute is located in Frankurt, which also hosts the headquarters of Bundesbank (German National Bank).

14. What is the name of the Council of Finance Ministers of EU member states participating in the Eurozone?

Answer: Euro-X

It was created in December 1997.

15. Which country didn't take part in the Stage III of EMU for political reasons?

Answer: Sweden

Sweden, along with the UK and Denmark, decided not to adopt the single currency. Greece joined only on January 1, 2001 (at first it didn't meet the convergence criteria).

Source: Author Beatka

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