Today's international monetary system is considered to be a ________ system.
A) fixed exchange
B) free float
C) managed float
D) linked exchange rate

Question

Quizplus · Accepted Answer

The current international monetary system is considered to be a managed float system, which means that the exchange rates are allowed to float freely in response to market forces, but central banks occasionally intervene to influence the value of their currencies. This is in contrast to a fixed exchange rate system, where exchange rates are pegged to a certain value, or a completely free float system, where exchange rates are determined solely by market forces with no intervention. A linked exchange rate system involves the use of a fixed exchange rate for a group of currencies, such as the euro.

Today's International Monetary System Is Considered to Be a ________