The Purpose of Creating the European Exchange Rate Mechanism (ERM)was

question 55

Multiple Choice

The purpose of creating the European exchange rate mechanism (ERM) was to

• A)base trade and investment on comparative advantage.
• B)prevent currencies from appreciating.
• C)create barriers to trade.
• D)let exchange rates float more freely.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Liability

A financial obligation or amount owed by a company to another party.

Asset

An economic resource that is owned or controlled by an individual or entity, expected to provide future benefits.

Cash Basis

An accounting method in which revenues and expenses are recorded only when cash is received or paid, rather than when they are incurred.