What is the difference between a clean float and a dirty float?
A) Most countries adopt a clean float policy while the dirty float policy is rare in practice
B) A clean float involves upper management policy interventions
C) A dirty float uses selective government interventions to determine exchange rates
D) A dirty float relies solely on the market to determine exchange rate

Question

Quizplus · Accepted Answer

A dirty float involves selective government interventions to influence exchange rates, whereas a clean float relies solely on market forces without government intervention.

What Is the Difference Between a Clean Float and a Dirty