In the ________ exchange rate system,the currency has limited flexibility and the rate is kept within a fixed band.

Question

Quizplus · Accepted Answer

In a target zone exchange rate system, the currency's value is allowed to fluctuate within a predetermined range or band. This system combines elements of fixed and floating exchange rates, providing limited flexibility while maintaining some control over the currency's value.

In the ________ Exchange Rate System,the Currency Has Limited Flexibility