Which of the following is/are correctly matched?

1. Free Trade Agreement (FTA)

Members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non-members.

2. Customs Union (CU)

It is a free-trade agreement in which members apply a common external tariff (CET) to imports from non-members, means all member states maintain the same tariffs and non-tariff trade barriers and preferential policies towards non-member states.

3. Common market

It is a customs union where movement of factors of production is relatively free amongst member countries. If the common market has the same currency, it is called a monetary union.

4. Economic Union (EU)

An economic union is a common market where member countries coordinate their macro-economic and exchange rate policies.

Select the wrong answer(s) using the code given below

Question

1. Free Trade Agreement (FTA)	Members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non-members.
2. Customs Union (CU)	It is a free-trade agreement in which members apply a common external tariff (CET) to imports from non-members, means all member states maintain the same tariffs and non-tariff trade barriers and preferential policies towards non-member states.
3. Common market	It is a customs union where movement of factors of production is relatively free amongst member countries. If the common market has the same currency, it is called a monetary union.
4. Economic Union (EU)	An economic union is a common market where member countries coordinate their macro-economic and exchange rate policies.