The rules for joining the Eurozone specified monetary economic conditions that the potential entrants had to achieve for admission. The convergence criteria of the ECB were:
A) moderate inflation, low unemployment, and adequate foreign currency reserves.
B) no national debt and no current account deficits within the past five years.
C) inflation rates roughly matching the lowest in the Eurozone, stable exchange rate peg for two years, and equivalent long-term interest rates.
D) a stable political situation, high GDP growth rate, and moderate unemployment
Ans: C) inflation rates roughly matching the lowest in the Eurozone, stable exchange rate peg for two years, and equivalent long-term interest rates.
You might also like to view...
If we compare the United States to France, we see that potential GDP per person in France is ________ that in the United States because the French tax wedge is ________ the U.S. tax wedge
A) greater than; larger than B) the same as; the same as C) greater than; smaller than D) less than; smaller than E) less than; larger than
Walmart wants to raise $250 million to finance the renovation of their retail stores, and the company wishes to raise the funds through indirect finance. Which of the following methods could it use?
A) It could sell $250 million in bonds. B) It could issue $250 million in stock. C) It could borrow $250 million from a bank. D) It could choose either A or B.