Question

Under the ______ Exchange Rate System, the Central Bank can control the rise / fall of foreign exchange rate in a range bound manners.

Options

• fixed

• flexible

• managing floating

• gold standard

Answer 1

Under the managing floating Exchange Rate System, the Central Bank can control the rise / fall of foreign exchange rate in a range bound manners. 

Explanation: 

A managed floating exchange rate system is one of the international exchange rate regimes in which the central bank can intervene in the foreign currency market by adjusting the exchange rate between specified ranges.