An exchange rate system in which governments and central banks do not participate in the
Currency market is a(n)

Question

Quizplus · Accepted Answer

A free-floating exchange rate system is one in which exchange rates are determined by market forces of supply and demand without intervention from governments or central banks. Managed float systems involve some degree of government intervention, commodity standard systems are based on the value of a commodity such as gold, and fixed exchange rate systems involve governments and central banks setting a specific exchange rate.

An Exchange Rate System in Which Governments and Central Banks