Under managed floating exchange rates, central bank intervention is used to offset temporary fluctuations in exchange rates that contribute to uncertainty in carrying out transactions in international trade and finance.

Question

Quizplus · Accepted Answer

Managed floating exchange rates allow for some flexibility in exchange rates, but central bank intervention can be used to mitigate short-term fluctuations that can create uncertainty in international transactions.

Under Managed Floating Exchange Rates, Central Bank Intervention Is Used