Which of the Following Applies to a Managed Float System

question 48

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

---

Definitions:

Defense Mechanism

Psychological strategies unconsciously used by individuals to protect themselves from anxiety or to cope with reality.

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Tachycardia

An abnormally fast heart rate, usually over 100 beats per minute in adults, indicating potential heart or health problems.

Hyperventilation

Rapid or deep breathing that can lead to reduced carbon dioxide levels in the blood, causing symptoms like light-headedness or tingling of the limbs.