No government intervention in active markets for foreign currency is typical of a

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In a floating exchange rate system, the exchange rate between two currencies is determined by the market forces of supply and demand, without any government intervention or control. Governments may choose to participate in the market by buying or selling their own currency in order to keep the exchange rate within a certain range, but they do not actively set the rate themselves, as in a fixed exchange rate system. Similarly, a managed float exchange rate system allows for some government intervention, but still ultimately allows the market to determine the exchange rate. A gold standard, while also not allowing for government intervention in the exchange rate, involves the use of gold as a unit of account or medium of exchange, rather than the currencies of different countries.

No Government Intervention in Active Markets for Foreign Currency Is