What Does a Managed (Or Dirty)float Mean

question 10

Multiple Choice

What does a managed (or dirty) float mean?

• A)That a country's currency is fixed to the price of gold.
• B)That a country's currency is fixed to the value of the U.S.dollar.
• C)That a country's balance of payments is persistently in deficit.
• D)That the country's central bank fixes the value of its currency.
• E)That a country's central bank buys and sells currencies in order to smooth out short-run fluctuations in its own currency.

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Definitions:

Socially Complex

Refers to characteristics or activities that involve intricate social structures and interactions, often challenging to replicate or understand fully.

Unique History

The distinctive and singular past or background of an individual, organization, place, or object that sets it apart from others.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market.

Capital Requirements

The minimum amount of capital a bank or financial institution must hold as required by financial regulators.