The frequency of government interventions in the foreign exchange markets explains why the current system is often referred to as a managed-float system or a(n)______________.
A) functional float system
B) statutory float system
C) dirty float system
D) unwieldy float system
E) controlled float system

Question

Quizplus · Accepted Answer

The term "dirty float" is often used to describe a system where government intervention occurs in order to manage the exchange rate, rather than leaving it entirely up to market forces. The other answer choices are not commonly used terms to describe the current foreign exchange system.

The Frequency of Government Interventions in the Foreign Exchange Markets