A dirty float refers to a situation in which:
A) a set of currencies are fixed against each other at some mutually agreed on exchange rate.
B) many countries join hands to form a monetary system and an exchange rate.
C) more than one foreign currency is used as the formal reference for a country's currency.
D) a country tries to hold its currency against an important reference currency without a formal pegged rate.

Question

Quizplus · Accepted Answer

Countries, while not adopting a formal pegged rate, try to hold the value of their currency within some range against an important reference currency such as the U.S. dollar, or a "basket" of currencies. This is often referred to as a dirty float.

A Dirty Float Refers to a Situation in Which