The frequency of government interventions in the foreign exchange markets explains why the current system is often referred to as a managed-float system or a
A)functional float system.
B)statutory float system.
C)dirty float system.
D)unwieldy float system.
E)controlled float system

Question

Quizplus · Accepted Answer

The term "dirty float" refers to a managed-float system where governments intervene in the foreign exchange markets to manipulate the value of their currency. This is in contrast to a clean float system where market forces determine the exchange rate without government intervention. The other options are not commonly used terms to describe the current international monetary system.

The Frequency of Government Interventions in the Foreign Exchange Markets