In saying that the present system of floating exchange rates is managed, we mean that

A) countries that allow their exchange rate to move freely will lose their borrowing privileges with the IMF.
B) the value of any IMF member's currency can only vary 2 percent from its par value.
C) IMF officials determine exchange rates on a day-to-day basis.
D) the central banks of various countries sometimes buy and sell foreign exchange to alter undesirable trends in exchange rates.

Floating Exchange Rates

Currency values that fluctuate in response to the foreign exchange market without intervention by government or central banks.

Central Banks

The principal monetary authority responsible for overseeing the monetary system, issuing currency, and implementing economic policies of a country or monetary union.

IMF

International Monetary Fund, an international organization aiming to foster global monetary cooperation, secure financial stability, and facilitate international trade.