Card 1 of 23
What distinguishes a fixed exchange rate from a managed float?
A
- Fixed rate: currency is determined entirely by market forces.
- Managed float: currency is determined entirely by central-bank decisions.
B
- Fixed rate: currency is steered towards a target or band.
- Managed float: currency is pegged permanently at an official value.
C
- Fixed rate: currency is pegged at an official value.
- Managed float: currency moves with the market but is steered towards a target or band.
D
- Fixed rate: currency moves freely with market demand and supply.
- Managed float: currency is pegged at an official value.
Card 1 of 23
11.2.2 determination of exchange rates under fixed and managed systems Flashcards
23 flashcards on CIE Intl A Level Economics 11.2.2 determination of exchange rates under fixed and managed systems: the key terms and definitions you need to recall.