A System of Managed Floating Exchange Rates Is

question 29

Multiple Choice

A system of managed floating exchange rates is

• A)a system in which governments may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• B)a system in which governments use flexible exchange rates.
• C)a system in which governments are forbidden from attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• D)a system in which governments need to reach a prior agreement among them before they may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed.
• E)a system in which governments use extensive fiscal policy to discourage exchange rate movements.

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