Assume that a country's government influences the exchange rate through active central bank intervention, with no pre-announced path. This policy is known as a(n):
a. floating exchange-rate policy.
b. managed floating exchange-rate policy.
c. fixed exchange-rate policy.
d. crawling-peg exchange-rate policy.
e. interventionist exchange-rate policy.
Question 2
The exchange rate of a currency will increase if the quantity demanded exceeds quantity supplied at the current exchange rate.
a. True
b. False
Indicate whether the statement is true or false
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