The Bretton Woods system of fixed exchange rates collapsed in 1973,and since then most countries have practiced a _________________.
A) stepwise fixed rate exchange system
B) more rigid and enforceable fixed exchange rate system
C) managed-float system
D) combination of managed float systems and fixed exchange rate systems
E) pegged exchange rate system

Question

Quizplus · Accepted Answer

Most countries have practiced a managed-float system since the collapse of the Bretton Woods system in 1973. Under a managed-float system, exchange rates are determined by market forces, but governments can intervene to adjust the exchange rate to correct any extreme fluctuations.

The Bretton Woods System of Fixed Exchange Rates Collapsed in 1973,and