Proponents of the managed floating exchange rate system argue that it has
A)added the volatility needed by the exchange rate market.
B)been effective because it is a "nonsystem" without fixed rules.
C)been sufficiently flexible to weather major economic turbulence.
D)resolved major problems in balance of payments surpluses and deficits.

Question

Quizplus · Accepted Answer

The managed floating exchange rate system allows for flexibility in response to economic changes, enabling countries to better manage major economic turbulence by adjusting their exchange rates as needed.

Proponents of the Managed Floating Exchange Rate System Argue That