Under the managed floating system of exchange rates: all exchange rates vary with changes in the free-market prices of gold.

Under the managed floating system of exchange rates:

1. all exchange rates vary with changes in the free-market prices of gold.
2. industrialized nations meet once each year to negotiate readjustments in their exchange rates.
3. exchange rates are essentially flexible, but governments intervene to offset "disorderly" fluctuations in rates.
4. exchange rates are adjusted at the discretion of the IMF.