UPSC Prelims 1998 · General Studies
Question 10: Economy and Social Development
The currency of the proposed European Monetary Union will be
AnswerThe answer is (b).
The single currency of the European Monetary Union is the euro. The name was chosen at the Madrid summit in December 1995, and the euro was introduced on 1 January 1999 for non-cash use, with notes and coins following in 2002. National currencies such as the guilder and the mark were then replaced. The 1992 Maastricht Treaty was the legal basis for the union. The dollar is the US currency and has no role in it.
Why each option is right or wrong
- (a) The dollar is the US currency; it was never proposed for Europe.
- (b) Right: the euro is the single currency of the union.
- (c) The guilder was the Dutch currency, replaced by the euro.
- (d) The mark was Germany's currency, also replaced by the euro.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1998, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.