If the value of a currency is influenced by a central bank that intervenes from time to time in the foreign exchange market,this is regarded as a:
A) partial float.
B) clean float.
C) dirty float.
D) soft float.

Question

Quizplus · Accepted Answer

When a central bank intervenes in the foreign exchange market to influence the value of a currency, it is considered a dirty float. This is because the value of the currency is not entirely determined by market forces, but rather by the actions of the central bank.

If the Value of a Currency Is Influenced by a Central