【单选题】

TheCirculation ofEuro

On January 1,2002, theEuro (欧元)became the single currency of 12 member states of theEuropean Union. This will make it the second largest currency in the world (the U. S. dollar being the largest). It will also be the largest currency event in the history of the worlD、Twelve national currencies will disappear and be replaced by theEuro.
The original seed was planted in 1946 when WinstonChurchill suggested the creation of the "United States ofEurope". His goals were primarily political, in that he hoped a unified government would bring about peace for a continent that had been torn apart by two world wars.
Then, in 1952, six west-European countries tookChurchill’s suggestion and created theEuropeanCoal and SteelCommunityECSC、. These resources were quite strategic to the power of each country, so a requirement of theECSC、was that each country allows their resources to be controlled by an independent authority. Their goal, just asChurchill had intended, was to help prevent military conflict between France and Germany.
In 1957, the Treaty of Rome was signed, declaring the goal of creating a commonEuropean market. It was signed by France, Germany, Italy,Belgium, the Netherlands, and Luxembourg.
After many false starts, the process of creating theEuro got its real start in 1989, when theDelors Report was published by JacquesDelors, President of theEuropeanCommission. This important report outlined a three-stage transition plan that would create a singleEuropean currency.
Economically, theEuro’s advantages include:
Elimination of exchange-rate fluctuations--Any time either a consumer or a business made a commitment to buy something in a different country in the future (at future prices.), they stood the chance of paying much more (or less) than they had planneD、TheEuro eliminates the fluctuations of currency values across certain borders.
Price transparency--Being able to easily tell if a price in one country is better than the price in another is also a big benefit, both for consumers and businesses. With price equalization (平等化) across borders, businesses have to be more competitive, pricing still varies, but consumers can more easily spot a good deal--or a bad one.
Transaction costs--This is particularly helpful for tourists and others who cross several borders during the course of a trip.Before, they had to exchange their money as they entered each new country. The costs of all of these exchanges added up significantly. With theEuro, no exchanges are necessary within theEuroland countries.
Increased trade across borders--The price transparency, elimination of exchange-rate fluctuations, and the elimination of exchange-transaction costs ail contribute to an increase in trade across borders of ail theEuroland countries.
Increased cross-border employment--Not only can business be conducted across borders more easily, but people are more easily employable across borders. With a single currency, it is less difficult for people to cross into the next country to work, because their salary is paid in the same currency they use in their own country.
Simplified billing--Billing for services, products, or other types of payments are simplified with theEuro.
Expanding markets for business--Business can expand more easily into neighboring countries. Rather than having to set up separate accounting systems, banks, etC、for transactions in countries other than their native one, theEuro makes it simple to operate from a single central accounting office and use a single bank.
Financial market stability--On a larger scale, the financial and stock exchanges can list every financial instrument inEuros rather than in each nation’s unit of money. This has further meanings in that it promotes trade with less restriction internationally, as well as strengthens theEuropean financial markets.Bank