Managed floats do NOT fall into which of the following categories of central bank intervention?
A)smoothing out daily fluctuations
B)leaning against the wind
C)unofficial pegging
D)letting market forces set exchange rates

Question

Quizplus · Accepted Answer

Managed floats involve letting market forces set exchange rates, so they do not fall into the category of central bank intervention. Smoothing out daily fluctuations and leaning against the wind both involve central bank intervention to influence exchange rates. Unofficial pegging also involves central bank intervention, as the bank is attempting to maintain a certain exchange rate by buying or selling its own currency.

Managed Floats Do NOT Fall into Which of the Following