To pave the way for the European Monetary Union,the member countries of the European Monetary System agreed to achieve a convergence of their economies.Which of the following is 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.

Question

Quizplus · Accepted Answer

Maintaining a currency at a fixed exchange rate to the ERM was a condition of membership in the European Monetary System, but not a condition of convergence for the European Monetary Union. The other three choices (A, B, and C) were conditions of convergence.

To Pave the Way for the European Monetary Union,the Member