When the value of a currency is determined ________,the exchange rate system is defined as managed float.

Question

Quizplus · Accepted Answer

In a managed float exchange rate system, the value of a currency is mostly determined by supply and demand in the foreign exchange market, but the government may occasionally intervene to influence its value through various measures such as buying or selling foreign currencies or adjusting interest rates. Thus, while market forces play a major role, the government still has some control over the currency's value.

When the Value of a Currency Is Determined ________,The Exchange