The Term "Dirty Float" Is Used to Describe A

question 43

Multiple Choice

The term "dirty float" is used to describe a:

• A)​currency that is allowed to float only in prosperous times.
• B)​nation that switches from free to fixed rates of exchange.
• C)​black market in foreign currencies.
• D)​floating currency that is sometimes changed by government central bank authorities.

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Definitions:

Currency Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

European Union

A political and economic union of 27 member states that are located primarily in Europe, aiming to ensure free movement of goods, capital, services, and labor.

Common Currency

A currency that is used by multiple countries, facilitating easier trade and financial transactions across national borders.

Member Countries

Countries that are official participants or members of an international organization or agreement.