The________ is an exchange rate system that is relatively free from central bank and other government-type interventions.
A)managed float
B)clean float
C)dirty float
D)target-zone arrangement

Question

Quizplus · Accepted Answer

A clean float is an exchange rate system where market forces determine the exchange rate, without central bank intervention or government policies. This contrasts with a managed float, where the central bank may intervene to influence the exchange rate, and a dirty float, where the government may manipulate the exchange rate through various policies. A target-zone arrangement involves setting a range within which the central bank will intervene to keep the exchange rate, but it still involves some level of intervention.

The________ Is an Exchange Rate System That Is Relatively Free