A system in which exchange rates are set by government policy is called a

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In a fixed exchange rate system, the government or central bank sets a specific exchange rate for its currency, which is then maintained through its policy actions. This contrasts with a free-floating exchange rate system, in which exchange rates are determined by market forces, or a managed float system, in which the government or central bank may intervene in the exchange rate to some degree but the exchange rate is not fixed. The commodity standard system involves tying the value of currency to a commodity, such as gold or silver.

A System in Which Exchange Rates Are Set by Government