In a managed float, central banks intervene in the _____ market to try to _________________ and nudge the exchange rate in the desired direction.
A) money, remain on the floor
B) money, remain on the ceiling
C) foreign exchange, remain on the floor
D) foreign exchange, smooth out fluctuations

Question

Quizplus · Accepted Answer

In a managed float exchange rate system, central banks intervene in the foreign exchange market to smooth out fluctuations in the exchange rate, aiming to stabilize the currency and guide it towards a desired level without having a fixed exchange rate target.

In a Managed Float, Central Banks Intervene in the _____