Intervention by central banks in the flexible exchange rate system is called:

Question

Quizplus · Accepted Answer

Intervention by central banks in the flexible exchange rate system, where they may buy or sell their own currency to influence the exchange rate, is known as a dirty float. A clean float is where exchange rates determined purely by market forces without any intervention, while the usage of Special Drawing Rights is a mechanism to supplement existing reserve assets held by central banks but does not refer to exchange rate intervention.

Intervention by Central Banks in the Flexible Exchange Rate System