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Question

Dirty float refers to

A

Rupee depreciation
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B

Rupee appreciation
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C

RBI intervention to stabilize currency
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D

Quantitative easing
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Solution

The correct option is C
RBI intervention to stabilize currency
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."

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