Why was the European Monetary System established?

Question

Quizplus · Accepted Answer

The European Monetary System was established to maintain small exchange rate fluctuation among member countries. It aimed to create monetary stability and facilitate economic growth among European countries. The establishment of the euro as a common currency came later, as a part of the further integration of European economies. Option A is incorrect as the euro was not established during the establishment of the European Monetary System. Option B is incorrect as not all member currencies were pegged to the Swiss Franc. Option D is incorrect as it does not relate to the objectives of the European Monetary System.

Why Was the European Monetary System Established