Central banks often intervene in currency markets.This activity is called
A)managed floating.
B)fixing exchange rates.
C)currency warfare.
D)super-pegging.
E)flexible floating.

Question

Quizplus · Accepted Answer

Central banks often intervene in currency markets to manage the exchange rate of their currency. This is known as managed floating. The central bank may buy or sell its own currency in the forex market to influence its value relative to other currencies. This intervention can be used to stabilize the currency, prevent rapid fluctuations, and support economic growth.

Central Banks Often Intervene in Currency Markets