Which of the following best describes a rate where selective government intervention works hand-in-hand,allowing markets the freedom to work themselves out?
A) Free float rate
B) Fixed rate
C) Dirty float rate
D) Target exchange rate

Question

Which of the following best describes a rate where selective government intervention works hand-in-hand,allowing markets the freedom to work themselves out? 
A) Free float rate 
B) Fixed rate 
C) Dirty float rate 
D) Target exchange rate

Quizplus · Accepted Answer

A dirty float rate is a flexible exchange rate where a central bank intervenes in the foreign exchange market while still allowing market forces to determine the exchange rate. This allows for some control over the exchange rate, but also allows for market flexibility.

Which of the Following Best Describes a Rate Where Selective