Prior to the introduction of the euro, many EU countries participated in a _____.
A) floating exchange rate system
B) currency board system
C) fixed exchange rate system
D) pegged exchange rate system

Question

Quizplus · Accepted Answer

In a fixed exchange rate system, the values of a set of currencies are fixed against each other at some mutually agreed upon exchange rate. Prior to the introduction of the euro, many EU countries participated in a fixed exchange rate system.

Prior to the Introduction of the Euro, Many EU Countries