Which of the following was a criterion to participate in the European Monetary Union?
A)The country's inflation rate must be less than or equal to 1.5 percentage points above the average inflation rate for the three lowest inflation EU countries.
B)The country's budget deficit must be lesser than 10 percent of the value of its GDP.
C)The gross government debt must be lesser than 100 percent of its GDP.
D)The country's exchange rates must be maintained within the ERM bands with no realignments during at least the previous 10 years.

Question

Quizplus · Accepted Answer

The criteria for participating in the European Monetary Union included maintaining an inflation rate that is no more than 1.5 percentage points above the average of the three EU member states with the lowest inflation. This was part of the convergence criteria or Maastricht criteria established to ensure that countries joining the EMU had stable economies.

Which of the Following Was a Criterion to Participate in the European