What Currency Was the Base, or Center, Currency in the ERM

question 75

Multiple Choice

What currency was the base, or center, currency in the ERM used in Europe during the 1980s and 1990s?

• A) the French franc
• B) the British pound
• C) the German mark
• D) the Italian lira

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Definitions:

Market Supply Curve

A graphical representation showing the quantity of a good that producers are willing and able to sell at various prices within a specific time period.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely to changes in price.

Long-Run

Refers to a period during which all factors of production and costs are variable, and all possible changes in production capacity can be undertaken.

Supply Curve

Represents the relationship between the quantity of a good that producers are willing to sell and the price of the good, typically depicted as upward-sloping on a graph.