With managed-floating exchange rates,

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Quizplus · Accepted Answer

Managed-floating exchange rates allow for flexibility in exchange rates according to market conditions, but also permit governments to intervene in order to prevent excessive volatility or disorderly movements in the exchange rates. This system does not fix exchange rates to a commodity like gold, nor does it involve annual meetings to set exchange rates, and while exchange rates do fluctuate according to supply and demand, the key aspect of managed floating is the potential for government intervention.

With Managed-Floating Exchange Rates