Fixed vs. flexible exchange rate?

Question

A central bank that has a strong preference for using monetary policy to address domestic goals will likely pursue a ......exchange rate policy. i'm not sure if fixed or flexible. thanks for your help

Answer 1

fixed, it gives them control and allows them to manipulate the exchange rate to pursue domestic goals, such as more production and fewer imports.

Answer 2

Fixed, because it gives more relaxation in adopting monetary policy and over come the import deficit. Fixed exchange rate also keep the value of domestic money constant as well.