A system under which a country's currency is nominally allowed to float freely against other countries,but in which the government will intervene if it believes the currency has deviated too far from its fair value is called a ____________t system.
A)developed or 'clean'
B)temporal or 'pegged'
C)controlled or 'ordinal'
D)managed or 'dirty'

Question

Quizplus · Accepted Answer

The description matches the definition of a "managed" exchange rate system, also sometimes referred to as a "dirty float" or "managed float" system. In this system, the government may intervene in the foreign exchange market by buying or selling currencies to influence the value of their own currency. This is in contrast to a fixed exchange rate system (such as a currency peg) or a completely floating exchange rate system with no government intervention.

A System Under Which a Country's Currency Is Nominally Allowed