Which of the following is the reason why the current foreign-exchange system is sometimes thought of as a managed-float system?
A) The exchange rates of a currency are determined by market forces.
B) Governments intervene frequently in the foreign exchange market.
C) Major currencies are allowed to freely float against each other.
D) Countries use a reference currency to estimate the value of their currencies.

Question

Quizplus · Accepted Answer

High frequency of government intervention in the foreign exchange market explains why the current system is sometimes thought of as a managed-float system or a dirty-float system.

Which of the Following Is the Reason Why the Current