As of March 2010, 16 of the 27 countries of the European Union have adopted the euro. The remaining 11 countries, including Great Britain, Denmark, and Sweden, have retained their own currencies. What are the advantages of a common currency for someone who is traveling through Europe?

Explain why a security for which there is a financial institution acting as a market maker would be more attractive to an investor.

Could the dollar still function as the unit of account in a totally cashless society?

Explain how money encourages specialization, and how specialization improves everyone’s standard of living.

If money growth is related to inflation, what would you expect to happen to the inflation rates of countries that join a monetary union and adopt a common currency such as the euro?