What Is the Difference Between a Clean Float and a Dirty

question 4

Multiple Choice

What is the difference between a clean float and a dirty float?

• A) Most countries adopt a clean float policy while the dirty float policy is rare in practice
• B) A clean float involves upper management policy interventions
• C) A dirty float uses selective government interventions to determine exchange rates
• D) A dirty float relies solely on the market to determine exchange rate

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Definitions:

Null Hypothesis

A statement of no difference or effect, used as the default assumption in hypothesis testing.

Alternative Hypothesis

In statistical testing, it is the hypothesis that proposes a difference or effect contrary to the null hypothesis.

Standard Error

A statistical measure that describes the accuracy with which a sample represents a population, specifically the variability of sampling distributions.

Test Statistic

A calculated value used to make a decision regarding a hypothesis test; it measures the degree of agreement between a sample data and the null hypothesis.