When exchange rates are limited to small fluctuations, but not totally fixed, economists refer to the situation as:
A) essentially fixed.
B) essentially floating.
C) relatively floating.
D) intermediate regimes.

Question

Quizplus · Accepted Answer

The situation described is known as an intermediate regime, where exchange rates are allowed to fluctuate within a limited range, but are not completely fixed. This is sometimes also referred to as a managed float or dirty float.

When Exchange Rates Are Limited to Small Fluctuations, but Not