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)the procedure by which ERM member countries collectively manage their exchange rates and is based on a "parity-grid" system,which is a system of par values among ERM countries.
D)none of the options

Question

Quizplus · Accepted Answer

The Exchange Rate Mechanism (ERM) is the procedure by which ERM member countries collectively manage their exchange rates and is based on a "parity-grid" system, which is a system of par values among ERM countries. Therefore, option C is the correct answer. Options A and B only partially define the ERM. Option D is incorrect as there are appropriate options available.