Asked by Abdul Rahman Aljajah on Jun 22, 2024
Verified
The exchange-rate system that we now have for major currencies like the U.S. dollar, yen, and euro is a "managed-floating" system.
Managed-Floating System
A foreign exchange policy whereby a country's central bank intervenes to control its currency value within certain limits, while still allowing the currency value to fluctuate in response to market forces.
- Assess the behavior of stationary against adaptable currency exchange frameworks.
Verified Answer
RM
rebecca mironchukJun 26, 2024
Final Answer :
True
Explanation :
Major currencies like the U.S. dollar, yen, and euro operate under a managed-floating exchange rate system, where their values fluctuate daily based on market forces, but central banks may intervene to stabilize or influence their currencies' values.
Learning Objectives
- Assess the behavior of stationary against adaptable currency exchange frameworks.