Which of the Following Does NOT Describe Why Britain Adopted

question 60

Multiple Choice

Which of the following does NOT describe why Britain adopted the pegged system (the Exchange Rate Mechanism [ERM]) in 1990?

• A) There were benefits to trade and other forms of cross-border exchange.
• B) Britain wanted to hold onto the pound as its currency.
• C) It was a member of the European Union and fixed rates were good for trade with other members.
• D) It hoped to participate in the new common currency when it was launched.