The term 'Managed Floating' exchange rate system means that:
A. The exchange rate is fixed in terms of gold only
B. There is no role whatsoever for the central bank
C. The exchange rate is largely market-determined with occasional central bank intervention
D. The exchange rate is rigidly fixed by the government
Answer: Option C
Solution (By JKSSB Mock Tests)
Under a managed float, the exchange rate is primarily determined by market forces, but the central bank intervenes from time to time to prevent excessive volatility or disorderly movements.
Explanation:
Doughnut economics visualises a safe and just operating space for humanity lying between a social foundation of human well-being and an ecological ceiling of planetary boundaries.
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