_____ refers to a system under which a country's currency is nominally allowed to float freely against other currencies,but in which the government will intervene,buying and selling currency,if it believes that the currency has deviated too far from its fair value.
A) Fixed float
B) Clean float
C) Pegged float
D) Dirty float
E) Capital float

Question

Quizplus · Accepted Answer

Dirty float refers to a system in which the exchange rate is allowed to fluctuate based on market forces, but with occasional intervention from the government to manage the currency's value. In contrast, clean float refers to a completely free-floating exchange rate system, while fixed float refers to a pegged exchange rate system in which the government maintains a fixed value for the currency. Pegged float and capital float are not commonly used terms in the context of exchange rate systems.

_____ Refers to a System Under Which a Country's Currency