On which date did the New Zealand government float the New Zealand Dollar, ending fixed exchange rates?
Answer and explanation
Correct answer: D. 4 March 1985, allowing market forces to determine the currency's foreign exchange value
- Step 1: Following the constitutional and foreign exchange crisis of July 1984, the Fourth Labour Government floated the dollar on 4 March 1985. Step 2. Finance Minister Roger Douglas removed exchange controls, exposing the currency to global supply and demand. Answer: 4 March 1985, allowing market forces to determine the currency's foreign exchange value. Why not the others: It marked a decisive break from decades of state-managed monetary regulation.
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