A Clean Floating Exchange Rate Policy Is a Government Policy

question 48

Multiple Choice

A clean floating exchange rate policy is a government policy to _____.

• A) set exchange rates purely on the basis of supply and demand 
• B) allow a currency's value to fluctuate according to the foreign exchange rate 
• C) allow selective government intervention in determining the exchange rate 
• D) link the exchange rate of a currency to the gold standard

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