Which of the following applies to a managed float system?
I. Governments and central banks seek to influence exchange rates by buying or selling
Their own currencies.
II. The exchange rates are allowed to float, but their values are influenced by governments.
III. Governments intervene to prevent large and sudden swings in the exchange rate.

Question

Quizplus · Accepted Answer

A managed float system involves government and central bank interventions to influence exchange rates (I), allows exchange rates to float with government influence (II), and includes interventions to prevent large swings (III).

Which of the Following Applies to a Managed Float System