The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-The euro floats against other currencies, but the member nations of the euro have no separate national money. For this reason, Spain, that uses the euro as its currency is listed under the managed float arrangement.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-The euro floats against other currencies, but the member nations of the euro have no separate national money. For this reason, Spain, that uses the euro as its currency is listed under the managed float arrangement.

Quizplus · Accepted Answer

Spain, using the euro, is part of the Eurozone where the currency floats against other currencies, but the European Central Bank (ECB) manages the euro for all member countries, not individual nations like Spain. Therefore, Spain itself is not listed under a managed float arrangement; the euro's exchange rate policy is centrally managed by the ECB for all Eurozone countries.

The Figure Given Below Depicts the Foreign Exchange Market for British