A system where currency values fluctuate with changes in supply and demand, but where central banks may intervene if currency values are thought to be over- or under-valued is called a(n)

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A managed float exchange rate system is one where the currency values fluctuate with changes in supply and demand, but central banks may intervene if they believe the currency is over- or under-valued. This allows for some flexibility in currency values, but also provides a level of stability with central bank intervention. Fixed exchange rate systems tie the value of a currency to another currency or commodity, while floating exchange rate systems allow the currency to freely float based on supply and demand without any central bank intervention. The international financial system refers to the global network of financial institutions and markets.

A System Where Currency Values Fluctuate with Changes in Supply