Answer choices for fill in the blank: a.) Freely floating. b.) fixed

Exchange rate systems Exchange Rate Systems Freely Managed Floating Float Fixed Pegged Description A system in which exchange rates are held constant A system in which exchange rates are determined by market forces, rather than government intervention A system in which exchange rates are allowed to fluctuate, but are subject to government Intervention A system in which the home currency is synchronized with the value of a particular foreign currency One advantage of a exchange rate system is that the country with such a system is less affected by inflation in other countries. Grade It Now Save & Continue Continue without saving