Most developed nations use a "managed float" policy to determine the value of their currencies in international markets, which means that central banks or other government monetary authorities will intervene frequently to keep their currency values in a relatively fixed ratio to the value of major convertible currencies (especially the dollar).

Question

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Most developed nations use a "free float" or "floating exchange rate" system where currency values are determined by market forces, with central banks intervening only occasionally to stabilize or influence the currency.

Most Developed Nations Use a "Managed Float" Policy to Determine