A _____ is a system in which the government intervenes extensively in the foreign exchange market to keep the exchange rate within certain bounds.

Question

Quizplus · Accepted Answer

In a dirty float system, the government intervenes in the foreign exchange market to influence the exchange rate, but does not fix it at a specific level. The government may buy or sell its own currency to stabilize the exchange rate within a certain range, hence keeping it from floating freely with market forces.

A _____ Is a System in Which the Government Intervenes