The Basic Type of Intervention by Central Banks Under the Managed

question 230

Multiple Choice

The basic type of intervention by central banks under the managed floating exchange rate system is to

• A)readjust the peg for exchange rates.
• B)buy and sell currencies to influence supply and demand for foreign exchange.
• C)renegotiate the rate at which foreign currencies can be converted into gold.
• D)make pronouncements but then do nothing and let the market set the exchange rate.