With a floating exchange rate:

Name: With a floating exchange rate:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

With a floating exchange rate, a central bank can use an independent monetary policy. This means that the central bank can adjust interest rates and the money supply without being constrained by the need to maintain a fixed exchange rate. Monetary policy can therefore be used to achieve domestic policy goals such as controlling inflation or promoting economic growth.

With a Floating Exchange Rate