It is argued that a _______________ exchange rate regime gives countries monetary policy autonomy.
A) restricted
B) forward
C) fixed
D) floating
E) managed float

Question

Quizplus · Accepted Answer

In a floating exchange rate regime, the value of a country's currency is determined by market forces of supply and demand, without government intervention. This means that the central bank of a country is able to adjust its monetary policy independently, without being constrained by a fixed exchange rate. Therefore, a floating exchange rate regime gives countries monetary policy autonomy.

It Is Argued That a _______________ Exchange Rate Regime Gives