This preview shows page 1. Sign up to view the full content.
Unformatted text preview: NOT a condition of convergence: A. keep the ratio of government budget deficits to GDP below 3 percent. B. keep gross public debts below 60 percent of GDP. C. achieve a high degree of price stability. D. maintain its currency at a fixed exchange rate to the ERM. 65. The European Monetary System (EMS) has the chief objective(s) A. to establish a "zone of monetary stability" in Europe. B. to coordinate exchange rate policies vis--vis the non-EMS currencies. C. to pave the way for the eventual European monetary union. D. all of the above 66. The Exchange Rate Mechanism (ERM) is A. the procedure by which ERM member countries collectively manage their exchange rates. B. based on a "parity-grid" system, which is a system of par values among ERM countries. C. a and b D. none of the above...
View Full Document
- Spring '11
- International Finance