Question

A system in which the government intervenes only if the exchange rate slips out of a target zone is called:

• A. Managed Floating System
• B. Flexible Exchange Rate System
• C. Fixed Exchange Rate System
• D. None of these

Answer 1

The correct option is A

Managed Floating System

A system in which the government intervenes only if the exchange rate slips out of a target zone is called a managed floating system.