Question

Choose the statement about flexible exchange rates that is correct. A. Next to the United​ States, China is the largest country that follows a flexible exchange rate policy. B. Most countries in the world do not follow a flexible exchange rate policy. C. A flexible exchange rate is unlike a fixed exchange rate because a flexible exchange rate follows a path determined by a decision of the government or central bank rather than taking a single value. D. A flexible exchange rate is influenced by central bank actions.

Answer 1

D. A flexible exchange rate is influenced by central bank actions.

Step-by-step explanation:

Since the central bank treated as an independent also there is a choice with regard to the regime of the exchange rate so this would result in the flexible exchange rate that could impacted by the actions of the central bank

So as per the given situation, the option d is correct

And the same should be considered and relevant too