Which Exchange-Rate System Involves a "Leaning Against the Wind" Strategy

question 156

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

---

Definitions:

Supervise

To observe and direct the execution of a task, project, or activity, ensuring standards are met.

Intolerant

Showing an unwillingness or inability to accept and respect differing opinions or beliefs.

Visual-spatial Ability

The capacity to understand, reason, and remember the spatial relations among objects or space.

Verbal Ability

The capacity to use and understand language effectively, encompassing both spoken and written forms.