A Managed Float Exchange Rate System Is One in Which

question 135

Multiple Choice

A managed float exchange rate system is one in which

• A) trading firms establish the exchange rates for individual transactions in the foreign exchange market.
• B) the central bank intervenes in the currency exchange market to influence, but not fix, the exchange rate.
• C) the central bank allows private banks to manage their exchange rates.
• D) the central bank intervenes in the currency exchange market to fix the exchange rate.

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