Under a managed float system,central banks can
A)allow international reserve changes.
B)let exchange rates adjust to market pressure.
C)experience reserve changes and exchange rate changes.
D)All of the above.

Question

Quizplus · Accepted Answer

Under a managed float system, central banks allow some flexibility in exchange rates to adjust to market pressures but also intervene to manage the movements of the exchange rate as needed. As a result, both international reserve changes and exchange rate changes can occur under this system. Therefore, option D, i.e., "All of the above," is the correct choice.

Under a Managed Float System,central Banks Can