Many states will bridge the gap between floating and fixed exchange rates by periodically intervening in the currency markets,usually to promote stability.This type of intervention is called a(n)__________ system.

Question

Quizplus · Accepted Answer

Managed float systems involve some degree of government intervention in currency markets to stabilize exchange rates. This can include buying or selling foreign currency to influence demand and supply and prevent excessive fluctuations in the exchange rate.

Many States Will Bridge the Gap Between Floating and Fixed