_____ have specified upper or lower bounds within which the exchange rate is allowed to fluctuate.
A) Fixed exchange rates
B) Target exchange rates
C) Free float exchange rates
D) Dirty float exchange rates

Question

_____ have specified upper or lower bounds within which the exchange rate is allowed to fluctuate.
A) Fixed exchange rates 
B) Target exchange rates 
C) Free float exchange rates 
D) Dirty float exchange rates

Quizplus · Accepted Answer

Target exchange rates are systems where a currency's value is allowed to fluctuate within a certain range or band. Countries adopting this system intervene in the foreign exchange market to keep their currency's value within these predetermined bounds.

_____ Have Specified Upper or Lower Bounds Within Which the Exchange