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.