If the value of a currency moves within a defined band,relative to another major currency this is a:
A) partial floating regime.
B) floating rate regime.
C) managed floating regime.
D) crawling peg regime.

Question

Quizplus · Accepted Answer

A managed floating regime allows the value of the currency to move within a defined band, and the central bank intervenes in the foreign exchange market to keep the currency within that band. This is different from a floating rate regime where the currency value is completely determined by market forces, and a crawling peg regime where the currency is allowed to move within a set range but with predetermined adjustments to the peg at set intervals. Partial floating regime is not a recognized term in international finance.

If the Value of a Currency Moves Within a Defined