With flexible exchange rates, when governments intervene in the market to influence the value of their...
With flexible exchange rates, when governments intervene in the market to influence the value of their currency, the system is referred to as:
A. The gold standard
B. A dirty float
C. A floating exchange rate system
D. A fixed exchange rate system
Homework Answers
Answer is B. It is called dirty floating.
Because nation have flexible exchange rate which is determined by market forces of demand and supply but sometimes government intervenes the market which is not explicit. This intervention is called dirty floating.
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With flexible exchange rates, when governments intervene in the
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7,8
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