Under a managed floating exchange rate system, the Nation’s monetary authorities intervene in Foreign Exchange Markets to
A. smooth out short-run fluctuations in exchange rates
B. smooth out long-run fluctuations in exchange rates
C. smooth out short-run and longrun fluctuations in exchange rates
D. keep exchange rates fixed among a group of nations
Answer:A
Under a managed floating exchange rate system, the Nation’s monetary authorities intervene in Foreign Exchange Markets to
A. smooth out short-run fluctuations in exchange rates B. smooth out long-run fluctuations in exchange rates C. smooth out short-run and longrun fluctuations in exchange rates D. keep exchange rates fixed among a group of nations