The European Monetary System
A)broke down in 1990 and resulted in a resurgence of inflation in many European countries.
B)was still in place in 1996 but was permitting frequent exchange rate adjustments.
C)came to an end in 1992 and was followed by devaluations in Italy,the U.K.and several other countries.
D)has been a successful experiment in fixed exchange rates and was still in place as of 1996.

Question

Quizplus · Accepted Answer

The European Monetary System came to an end in 1992 and was followed by devaluations in Italy, the U.K., and several other countries. This was due to the inability of the system to cope with economic shocks and imbalances among member countries.