Which of the Following Is One of the Convergence Criteria

question 143

Multiple Choice

Which of the following is one of the convergence criteria that countries needed to satisfy to join the Eurozone?

• A) 10 consecutive years in the ERM band without devaluation of its currency
• B) a government deficit of no more than 25% of GDP in the previous year
• C) total government debt of no more than 60% of GDP in the previous year
• D) an inflation rate of 0% in the previous 10 consecutive years

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Definitions:

Investment in Grub

Specific reference to an investment made in a company known as "Grub", treated according to the investor's accounting method for such investments.

Goodwill

An intangible asset representing the excess of the purchase price over the fair market value of an acquired company's net assets, attributed to factors like reputation.

IASB Requirements

The mandatory guidelines and standards set by the International Accounting Standards Board for financial reporting and accounting practices worldwide.

Cash-Generating Units

The smallest identifiable group of assets that generates cash inflows and is largely independent of the cash inflows from other assets or groups of assets.