Question

______ is a scheme under which government can intervene to vary the exchange rate when the situation demands so. 

Options

• Wider bands

• Crawling peg

• Managed floating

• None of the above

Answer 1

Managed floating is a scheme under which government can intervene to vary the exchange rate when the situation demands so.

Explanation:

Managed floating is a system in which the government can intervene to modify the exchange rate when circumstances require it. There isn't any as in crawling pegs, there is a fixed limit of variation in broader bands.