A system in which governments intervene in foreign exchange markets to limit but not eliminate exchange rate fluctuations is referred to as

Question

Quizplus · Accepted Answer

A managed exchange rate system is one in which governments take actions to limit fluctuations in exchange rates but still allow for some degree of variability. This can involve buying or selling currencies on the foreign exchange market in order to influence the exchange rate, or placing controls on capital flows to restrict the movement of money in and out of the country. This approach is often preferred by governments who want to maintain some degree of autonomy in their economic policies, but also want to avoid the extremes of fixed or floating exchange rates.

A System in Which Governments Intervene in Foreign Exchange Markets