Economic Awareness - Sectors of Indian Economy
Which exchange rate system is also called a 'dirty float' due to occasional central bank intervention despite mostly market-driven currency value?
Which exchange rate system is also called a 'dirty float' due to occasional central bank intervention despite mostly market-driven currency value?
easy Q3 of 15
Step-by-Step Solution
Step 1: Understand the term 'dirty float'
'Dirty float' refers to a system where currency mostly floats but central bank intervenes occasionally.Step 2: Match with exchange rate types
Managed float exchange rate fits this description. Floating exchange rate has no intervention, fixed exchange rate is pegged, and currency board is a strict fixed system.Final Answer:
Managed Float Exchange Rate → Option DQuick Check:
Managed float = dirty float with occasional intervention ✅
Quick Trick: Managed float = Mostly free with management.
Common Mistakes:
MISTAKES- Confusing managed float with pure floating or fixed systems.
Master "Sectors of Indian Economy" in Economic Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Economic Awareness Quizzes