Industrialized countries typically ________ their floating exchange rates.Developing countries often ________ their floating exchange rates.
A)manage;peg
B)peg;manage
C)allow markets to determine;fix
D)fix;manage
E)fix;allow markets to determine

Question

Quizplus · Accepted Answer

Industrialized countries usually manage their floating exchange rates through monetary policies and intervention in the foreign exchange market, while developing countries often peg their currency to a stronger currency or a basket of currencies to provide stability and attract foreign investment.

Industrialized Countries Typically ________ Their Floating Exchange Rates