Question

A flexible exchange rate is one that​ _______.

 

1. is determined by a decision of the government or the central bank and is achieved by central bank intervention in the foreign exchange market to block the unregulated forces of demand and supply.

2. is determined by demand and supply in the foreign exchange market with no direct intervention by the central bank.

3. follows a path determined by a decision of the government or the central bank and is  achieved by central bank intervention in the foreign exchange market

4. operated in the world economy from the end of World War II to the early 1970s