Author Question: The main function of the 1997 Stability and Growth Pact (SGP) was to A) exclude a highly indebted ... (Read 54 times)

lak · **on:** Jun 30, 2018

The main function of the 1997 Stability and Growth Pact (SGP) was to

A) exclude a highly indebted EMU country
B) enhance cooperation between France and Germany.
C) make the Euro a weak currency.
D) distribute the Euro banknote among European central banks and to create a timetable for the imposition of financial penalties on countries that fail to correct situations of excessive deficits and debt promptly enough.
E) determine specialized penalties for each member nation.

Question 2

One should expect the forward exchange market to flourish

A) under a fixed exchange rate regime.
B) under a flexible exchange rate regime.
C) under neither fixed nor flexible exchange rate regimes.
D) under both fixed and flexible exchange rate regimes.
E) only under a gold standard.