The current international monetary system can be called

Select one:

A. a managed float exchange rate system because currencies are allowed to fluctuate, but government central banks intervene when a currency is considered over-valued or under-valued.

B. a flexible exchange rate system because the value of a currency is determined by the demand and supply of that currency in international markets with no government intervention whatsoever.

C. a freely floating exchange rate system because the value of a currency is freely determined in the international market without any government intervention or controls.

D. a fixed exchange rate system because supply and demand actually has little to do with determining the value of any currency in international markets.

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The current international monetary system can be more correctly called

Select one:

A. a managed float exchange rate system because currencies are allowed to fluctuate but government central banks intervene when a currency is over valued or undervalued.

B. a fixed exchange rate system because the value of a currency is set by the G-7 participating countries.

C. a free float exchange rate system because the value of a currency is freely determined in the international monetary market without any government controls.

D. None of the above.