Question

The ‘Convergence Criteria’ for joining the monetary union included...
Group of answer choices

A)the country must have taken part in the ERM for at least two years without having had to devalue its currency, its public debt should not exceed 30 per cent of its GDP or be moving in that direction, and its government deficit should be less than 6 per cent.

B)the country must have taken part in the ERM for at least two years without having had to devalue its currency, its public debt should not be below 60 per cent of its GDP or be moving in that direction, and its government deficit should be less than 3 per cent.

C)the country must have taken part in the ERM for at least two years without having had to devalue its currency, its public debt should not exceed 60 per cent of its GDP or be moving in that direction, and its government deficit should be less than 3 per cent.

D)the country must have taken part in the ERM for at least two years, its public debt should not exceed 60 per cent of its GDP or be moving in that direction, and its government deficit should be less than 3 per cent.

Answer 1

D) the country must have taken part in the ERM for at least two years, its public debt should not exceed 60 per cent of its GDP or be moving in that direction, and its government deficit should be less than 3 per cent.

Criteria for Joining the Euro Zone includes:

Government deficit must not exceed 3% of GDP.
Gross government debt must not exceed 60% of GDP.
The member state must have achieved exchange-rate stability for at least two years according to the rules of the European exchange-rate mechanism, which defines the permitted levels of fluctuation.