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The European Monetary System's objectives are promoting trade among trading members and maintaining exchange rate stability within Europe.

What is an example of a monetary system?

A monetary system is a way for a government to inject money into the financial system of a nation. The national treasury, the mint, the central banks, and the commercial banks are typically the components of contemporary monetary systems. Commodity money, money based on commodities, and fiat money are the three most common types of monetary systems. The most prevalent kind of monetary system in use today is fiat money. The amount of money in circulation is controlled by a country's central bank in order to maintain a healthy economy. The US dollar is an example of fiat currency.

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