The current system of exchange rates can best be described as:
A)flexible exchange rates
B)gold standard
C)rigidly fixed exchange rates
D)a crawling peg system
E)a managed float system

Question

Quizplus · Accepted Answer

The current system of exchange rates is a managed float system. This means that exchange rates are allowed to fluctuate based on market forces, but central banks may intervene to influence the value of their currency. This is in contrast to a flexible exchange rate system where the exchange rate is purely determined by market forces, or a rigidly fixed exchange rate system where the government sets a strict exchange rate and intervenes to maintain it. The gold standard and crawling peg system are both historical systems of exchange rates that are not currently in use.

The Current System of Exchange Rates Can Best Be Described