BANKING AFFAIRS

Detailed explanation-1: -A dirty float is a floating exchange rate where a country’s central bank occasionally intervenes to change the direction or the pace of change of a country’s currency value. A dirty float is also known as a “managed float."

Detailed explanation-2: -A dirty float is also known as a “managed float.” This can be contrasted with a clean float, where the central bank does not intervene.

Detailed explanation-3: -determine its exchange rate: a free float, in which the exchange rate for a country’s currency is determined by the supply and demand of that currency on the international currency markets; a managed float, in which a country’s monetary officials will occasionally intervene in international currency markets to buy or…

Detailed explanation-4: -Managed Floating Exchange Rate Definition In simple terms, a managed floating exchange rate is a system where currencies fluctuate daily but the regulatory authorities, including the government and the Reserve bank of India, may step in to control and stabilize the value of the currency.

Detailed explanation-5: -Answer: it’s (b) flexible system of exchange rate.