What’s the Managed Float Exchange Rate SystemSolutionThis is .pdf

What
Solution
Harry wants to check whether or not two nominal variables ( listens to Bach ( yes or no), reads
the newspaper ( yes or no)) are associated. His chi-squared statistic is high ( 12.34). He
concludes that there is a very strong association between listening to Bach and reading the
newspaper.
Maybelle calculates a z score of 0.6 and reports that this represents the 27th percentile.
Clyde says the events A and B are independent, therefore if P(A) = 1 then P(B) must be zero.
X is N( µ = 50, ? = 7), so the P( X = 50) = 0.
Faye says that her calculated correlation coefficient is – 1.2. This proves that there is a strong
linear relationship between the two quantitative variables..

1. What’s the Managed Float Exchange Rate System?

Solution

This is a system of Floating exchange rates with central bank intervention to reduce currency
fluctuations .
In order to control currency fluctuations ,central bank intervene to control the reduction in
currecy values.