Foreign Exchange Rate
2 Board Economics previous year questions on Foreign Exchange Rate — options free on every question; 1 include the answer & explanation free, the rest unlock with PYQ Pass.
Market forces of demand and supply, actively interact under _________ exchange rate system to determine the foreign exchange rate.
(Choose the correct option to fill in the blank)
flexible
A flexible exchange rate system, also known as a floating exchange rate, is determined solely by the market forces of demand and supply for foreign exchange.
Read the following statements carefully:
Statement 1: Depreciation of currency is an economic action undertaken by the government of a nation under the fixed exchange rate system.
Statement 2: Under the floating exchange rate system, authorities actively intervene in the foreign exchange market by maintaining foreign exchange reserves.
In the light of the given statements, choose the correct option from the following:
Options are free to see. Unlock the correct answer and full explanation with Pass.
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