An exchange rate system in which the value of a currency is determined by supply and demand and where central banks on occasion intervene in the market is called which of these?

Question

Quizplus · Accepted Answer

A managed floating exchange rate system allows for a currency's value to be determined by supply and demand, but also permits central banks to intervene in the market when necessary. This differs from a flexible (floating) rate system where the central bank does not typically intervene and a fixed rate system where the value of the currency is set by the government at a specific rate.

An Exchange Rate System in Which the Value of a Currency