Because central banks intervene in currency markets, the term ____ has been used to describe the system.

Question

Quizplus · Accepted Answer

Dirty float is a system where central banks intervene in currency markets, buying or selling currencies to influence their value. This is different from a pure float or flexible exchange rate system, where market forces determine the currency's value without intervention. Therefore, the best choice is D, dirty float.

Because Central Banks Intervene in Currency Markets, the Term ____