Although Denmark currently pegs its krona to the euro successfully, it has not joined the currency union. All of the following are reasons, EXCEPT:
A) with a peg, the Danish monetary authority has the option to exercise control over the exchange rate in the future if needed.
B) Denmark has an additional option to abandon its peg to the euro if required to maintain stability.
C) Denmark has the option to conduct monetary policy if it chooses.
D) if Denmark gave up its krona and adopted the euro, it could always easily go back to the krona if needed to preserve monetary autonomy.
Ans: D) if Denmark gave up its krona and adopted the euro, it could always easily go back to the krona if needed to preserve monetary autonomy.
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