World Currencies (Historical) What was the national currency of Greece prior to 01 Jan 2002 (before adopting the euro)?

Difficulty: Easy

Correct Answer: drachma

Explanation:


Introduction / Context:
Before the euro's introduction as cash in 2002, European nations used their own national currencies. This question checks your recall of Greece's pre-euro unit, a frequent item in general knowledge and competitive exams concerning economics and international affairs.


Given Data / Assumptions:

  • Date reference: prior to 01 Jan 2002 (euro banknotes/coins launch).
  • We must identify Greece's currency used historically across different periods.
  • Distractors list currencies of other countries/regions.


Concept / Approach:
The Greek drachma was the national currency until it was replaced by the euro for cash transactions in 2002 (accounting adoption had begun earlier). Other options: guilder (Netherlands, pre-euro), yen (Japan), dinar (used by several countries in the Middle East/North Africa and the Balkans) are not Greek.


Step-by-Step Solution:

Note the timeframe: before euro cash introduction.Recall the Greek currency name: drachma.Eliminate mismatched currencies (guilder, yen, dinar).Select option B.


Verification / Alternative check:
Historical banknotes and coins, as well as exchange rate records from the late 1990s, list values in GRD (Greek drachma), confirming correctness.


Why Other Options Are Wrong:

  • Guilder: Dutch currency before the euro.
  • Yen: Currency of Japan.
  • Dinar: Used in countries such as Jordan, Serbia, Algeria; not Greece.


Common Pitfalls:
Confusing Mediterranean countries that later adopted the euro (e.g., Spain, Italy, Greece) with Middle Eastern or East Asian currencies due to similar-sounding names.


Final Answer:
drachma

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