European Monetary System is best described as a
A) clean float
B) target-zone arrangement
C) dirty float
D) managed float

Question

Quizplus · Accepted Answer

The European Monetary System (EMS) was a target-zone arrangement where exchange rates of member currencies were kept within a narrow margin of fluctuation against each other. This allowed for some flexibility in exchange rates while promoting stability and reducing volatility. The EMS was in place from 1979 to 1999 before being replaced by the Euro.

European Monetary System Is Best Described as a