_____________ float is the closest approximation to perfect competition, because there is no government intervention and because billions of units of currency are
Being traded by buyers and sellers.
A) Managed (clean)
B) Managed (dirty)
C) Vertical
D) Free (clean)
E) Horizontal

Question

Quizplus · Accepted Answer

Free float, also known as clean float, comes closest to perfect competition because there is no government intervention and there is a high number of units of currency being traded by buyers and sellers, making it difficult for any one entity to influence the market price. Managed floats, whether clean or dirty, involve varying degrees of government intervention and can limit the number of units of currency being traded, making them less competitive. Vertical and horizontal are not relevant terms in this context.

_____________ Float Is the Closest Approximation to Perfect Competition, Because