If a country has a ________ exchange rate, its central bank must buy and sell its holdings of currencies to maintain a given exchange rate.
A)floating
B)flexible
C)fixed
D)managed
E)all of the above

Question

Quizplus · Accepted Answer

A fixed exchange rate requires the central bank to intervene in the foreign exchange market by buying and selling currencies to maintain the exchange rate at a predetermined level.

If a Country Has a ________ Exchange Rate, Its Central