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
- AFrance and Switzerland
- BSwitzerland and Luxembourg
- CLuxembourg and BelgiumCorrect
- DFrance and Belgium
Explanation
The correct answer is C because Luxembourg and Belgium maintained a monetary union long before the creation of the Euro. Starting in 1922 under the Belgium Luxembourg Economic Union, the Belgian Franc and the Luxembourg Franc were pegged at a one to one ratio. This allowed the two currencies to be interchangeable and circulate freely as legal tender in both nations until they both adopted the Euro. France and Switzerland did not share such a union, as Switzerland is not part of the European Union monetary agreements and maintains its own independent Swiss Franc.
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