Within the European Exchange Rate Mechanism (ERM), each member country maintained a fixed exchange rate, and together the group ________ in relation to other countries worldwide?

Show Answers

maintained a nominal exchange rate that was allowed to floatmaintained a fixed real exchange rateadhered to a fixed purchasing power parityallowed a floating real exchange rate

Explanation

In the ERM, individual countries fixed their nominal exchange rates to each other, but the collective group allowed their nominal exchange rate to float against currencies outside the system.