Question:
Under the ________ Exchange Rate System, the Central Bank can control the rise/fall of foreign exchange rate in a range-bound manner. (Fill up the blank with the correct alternative.)
Under the ________ Exchange Rate System, the Central Bank can control the rise/fall of foreign exchange rate in a range-bound manner. (Fill up the blank with the correct alternative.)
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Managed floating is a hybrid system combining market-driven exchange rates with occasional Central Bank intervention.
Updated On: June 02, 2025
- fixed
- flexible
- managed floating
- gold standard
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The Correct Option is C
Solution and Explanation
Under the managed floating exchange rate system, the exchange rate is primarily market-driven, but the Central Bank intervenes to stabilize it within a specified range.
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