Why is the current exchange rate system called a managed float?

Question

Quizplus · Accepted Answer

The current exchange rate system is called a managed float because it recognizes that there will be some intervention by central banks. While exchange rates are allowed to float freely based on market forces, central banks may still intervene to stabilize their currency or achieve other policy goals. The IMF and World Bank are not directly involved in managing exchange rates under this system. Choice D is not accurate as central bank intervention is a key feature of a managed float system.

Why Is the Current Exchange Rate System Called a Managed