_____________ float is the closest approximation to perfect competition, because there is no government intervention and because billions of units of currency are being traded by buyers and sellers.
A)Managed (clean)
B)Managed (dirty)
C)Vertical
D)Free (clean)
E)Horizontal

Question

Quizplus · Accepted Answer

Free (clean) float is the closest approximation to perfect competition in currency markets because it implies no government intervention in the exchange rates, allowing the currency value to be determined purely by market forces, similar to the ideal of perfect competition.

_____________ Float Is the Closest Approximation to Perfect Competition, Because