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The Reason the Current Exchange Rate System Is Called a "Managed

Question 108

Multiple Choice

The reason the current exchange rate system is called a "managed float" is that:


A) it is managed by the IMF.
B) it is basically a misnomer.
C) it recognizes that there will be some intervention by central banks.
D) only the forces of supply and demand determine the exchange rates.
E) Congress passed a law declaring that the exchange rate system be legally termed "managed float."

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