A managed float
A) is an attempt to maintain a stable exchange rate
B) is invariably unsuccessful
C) is invariably successful
D) is an attempt to let the price level float upward
E) is an attempt to get the interest rate to float upward

Question

Quizplus · Accepted Answer

A managed float is an attempt by a central bank to maintain a stable exchange rate by intervening in the foreign exchange market to influence the value of its currency. It is not always successful as various economic factors can affect the exchange rate.

A Managed Float