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:

Demand Curve

The demand curve is a graphical representation that shows the relationship between the price of a good or service and the quantity demanded by consumers.

Frozen Yogurt

A frozen dessert made with yogurt and sometimes other dairy products, often viewed as a healthier alternative to traditional ice cream.

Sugar

A sweet-tasting, soluble carbohydrate that is used to sweeten food and beverages, derived from sources like sugarcane and sugar beets.

Market Shift

A significant change in the supply, demand or overall conditions of a market, which can result from various factors like technological advances or shifts in consumer preferences.