Question:medium

In a managed floating exchange rate system:

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Think of it like a kite: it flies freely in the wind (market forces), but the central bank holds the string and pulls it back if it drifts too far in any direction!

Updated On: May 13, 2026

Exchange rates are fully market determined
Gold determines exchange rates
Government or central bank intervenes when required
Exchange rates remain permanently fixed

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The Correct Option is C

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