What term recognizes that in addition to private sector market forces, exchange rates are also affected by central banks buying or selling currencies on the foreign-exchange market?
A) par value
B) flexibility
C) managed float
D) special drawing rights

Question

Quizplus · Accepted Answer

Managed float, also known as a dirty float, refers to a situation where exchange rates are determined by market forces (supply and demand) but are subject to intervention by central banks. Central banks may buy or sell currencies to influence their price, aiming to stabilize or achieve specific economic objectives.

What Term Recognizes That in Addition to Private Sector Market