Why is the current foreign exchange system thought of as a dirty-float system?
A)Because of the frequency of government intervention in the foreign exchange market
B)Because of the extreme volatility in the foreign exchange market
C)Because it is essentially a system of fixed foreign exchange rates
D)Because of absolute government control of exchange rates

Question

Quizplus · Accepted Answer

The frequency of government intervention in the foreign exchange market explains why the current system is sometimes thought of as a managed-float system or a dirty-float system.

Why Is the Current Foreign Exchange System Thought of as a Dirty-Float