Multiple Choice
Which of the following is not a reason for the vulnerability of the European Exchange Rate Mechanism (ERM) to speculation in the period from 1990 to 1993?
A) The French franc appeared to be overvalued after 1990.
B) Cuts in US interest rates were causing capital to flow to Germany.
C) The Maastricht Treaty was signed in February 1992.
D) The Germans kept their interest rates high after re- unification.
Correct Answer:
Verified
Correct Answer:
Verified
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