A 'Floating Exchange Rate System' Is One in Which

Multiple Choice

A 'floating exchange rate system' is one in which:

A) the central bank intervenes in the currency exchange market to influence, but not fix, the exchange rate.
B) trading firms establish the exchange rates for individual transactions in the foreign exchange market.
C) the central bank allows private banks to manage their exchange rates.
D) the central bank intervenes in the currency exchange market to fix the exchange rate.