Which of the Following Applies to a Managed Float System

question 186

Multiple Choice

Which of the following applies to a managed float system?
I. Governments and central banks seek to influence exchange rates by buying or selling their own currencies.
II. The exchange rates are allowed to float, but their values are influenced by governments.
III. Governments intervene to prevent large and sudden swings in the exchange rate.

• A) II and III only
• B) I and II only
• C) I and III only
• D) I, II, and III

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Definitions:

Novel

New or unusual in an interesting way.

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Suitable or proper in the context of particular conditions or circumstances.

Critical Thinking Skills

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A stage in the creative problem-solving process during which an individual sets the problem aside and does not consciously think about it, often leading to a solution emerging spontaneously.