One way for a country to gain policy independence and provide some ability to reduce exchange-rate variability is to use:
A)a managed floating exchange rate.
B)a gold standard.
C)a monetary union.
D)a currency board.

Question

Quizplus · Accepted Answer

A managed floating exchange rate allows a country to intervene in the foreign exchange market to stabilize its currency, thus providing some degree of policy independence and the ability to reduce exchange-rate variability.

One Way for a Country to Gain Policy Independence and Provide