Which of the following is one of the conditions that was set under the Maastricht Treaty and must be met before a nation could join the European Monetary Union?
A)an inflation rate not exceeding 10 percent of the three member nations with highest inflation rate
B)a budget surplus not exceeding 3 percent of GDP
C)overall government debt not exceeding 60 percent of GDP
D)the average exchange rate not increasing by more than 5% of the EMS for the 5 years before joining the union

Question

Quizplus · Accepted Answer

One of the conditions set under the Maastricht Treaty was that the overall government debt of a nation should not exceed 60 percent of its GDP. Choice A is incorrect because it mentions an inflation rate criteria, which is not one of the conditions under the Maastricht Treaty. Choice B is incorrect because the budget surplus criteria states that it should not exceed 3 percent of GDP, which means having a budget surplus is allowed as long as it is within the limit. Choice D is incorrect because the average exchange rate criterion is not one of the conditions set under the Maastricht Treaty.

Which of the Following Is One of the Conditions That