Which Exchange Rate System Involves a "Leaning Against the Wind

question 86

Multiple Choice

Which exchange rate system involves a "leaning against the wind" strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run?

• A) pegged or fixed exchange rates
• B) adjustable pegged exchange rates
• C) managed floating exchange rates
• D) freely floating exchange rates

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