C. Independent floating.

Independent floating means that an exchange rate of any currency is free to float to any level which supply and demand may determine.

Independent floating potentially provides a mechanism for an efficient foreign exchange market.

Most industrial countries and some developing countries have adopted floating or flexible exchange rate systems, because countries have found it expedient for both economic and political reasons to adopt a more flexible system.

Based on: Macroeconomic Adjustment:

Policy Instruments and Issues

IMF Institute, 1992

Words you may need:

 

peg n привязка

basket of currenciesкорзина валют

alternative approachальтернативный подход

weighted averageвзвешенное среднее значение

swingn колебание

vis-a-visprep пo отношению к

independent floatingсвободный плавающий курс

expedientadj целесообразный