The economic and monetary union of 15 European Countries is proposed to be made by 1999. But the currencies of two countries, Franc, have already the same value and circulate freely in both the countries. The countries are

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Q: 4 (IAS/1997)
The economic and monetary union of 15 European Countries is proposed to be made by 1999. But the currencies of two countries, Franc, have already the same value and circulate freely in both the countries. The countries are

question_subject: 

Current Affairs

question_exam: 

IAS

stats: 

0,12,74,37,20,12,17

keywords: 

{'currencies': [0, 2, 0, 1], 'european countries': [0, 2, 0, 2], 'monetary union': [0, 1, 0, 0], 'luxembourg': [0, 1, 1, 1], 'belgium': [6, 2, 8, 4], 'franc': [0, 1, 0, 0], 'countries': [1, 0, 2, 6], 'france': [1, 0, 0, 0], 'switzerland': [9, 3, 9, 11]}

The question is about the two european countries where the franc currency had the same value and circulated freely before the economic and monetary union was proposed to be made by 1999. The correct answer is option 3, Luxembourg and Belgium.

Option 1, France and Switzerland, is incorrect because Switzerland is not part of the Eurozone and still retains its own currency, the Swiss Franc, which doesn`t have the same value as the French Franc.

Option 2, Switzerland and Luxembourg, is also incorrect. As previously mentioned, Switzerland uses the Swiss Franc and is not part of the Eurozone. Therefore, there wasn`t any free circulation of the Franc between these two countries.

Option 4, France and Belgium, is not the right answer. Yes, both countries were part of the EU, but their Francs didn`t have the same value or circulate freely among the nations prior to the Union.

Option 3, Luxembourg and Belgium, is the correct answer. Before the economic and monetary union, these two countries had a monetary agreement establishing the Belgian Franc as legal tender in Luxembourg, and thus, the same value and free circulation were present.