A disadvantage of the free float is that foreigners are unable to buy domestic corporate bonds.

Question

Quizplus · Accepted Answer

Free float refers to the foreign exchange system where the currency's value is allowed to fluctuate according to the foreign exchange market. It does not directly restrict foreigners from buying domestic corporate bonds; such restrictions would be determined by specific capital control policies, not the exchange rate regime.

A Disadvantage of the Free Float Is That Foreigners Are