Which of the following exchange rate systems is in the right order, from MOST control to LEAST control?
A) floating, fixed, managed float
B) fixed, floating, managed float
C) managed float, floating, fixed
D) fixed, managed float, floating

Question

Quizplus · Accepted Answer

Fixed exchange rate systems offer the most control as they peg the currency to another currency or a basket of currencies. Managed float systems, also known as dirty floats, allow for some fluctuation in the currency value influenced by market forces, but the central bank may intervene to stabilize the currency. Floating exchange rates are the least controlled, as they are determined by the foreign exchange market with little to no intervention by the central bank.

Which of the Following Exchange Rate Systems Is in the Right