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Dear Student,
The correct statement is option C.
In the managed floating exchange rate system, the central bank intervenes to moderate exchange rate fluctuations.
Note - 'Currency intervention' is the exchange rate mechanism in which the central bank intervenes to moderate the exchange rate movements due to demand and supply of foreign exchange.
The correct statement is option C.
In the managed floating exchange rate system, the central bank intervenes to moderate exchange rate fluctuations.
Note - 'Currency intervention' is the exchange rate mechanism in which the central bank intervenes to moderate the exchange rate movements due to demand and supply of foreign exchange.
Regards