A Managed Floating Exchange Rate Regime Is

question 6

Multiple Choice

A managed floating exchange rate regime is:

• A)a constant rate of exchange between currencies.
• B)an exchange rate determined by the supply and demand factors in the foreign exchange markets.
• C)an exchange rate that is allowed to float or move within a defined or set band relative to another currency.
• D)a managed float where an exchange rate is allowed to appreciate in controlled steps over time.

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Definitions:

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A table that shows the potential outcomes of different strategies in a game, used in decision theory and economics.

Repeated Game

A strategic game played multiple times by the same participants, where the outcome of one play can affect the strategies in subsequent plays.

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