Question

4. Out of the following which statement is not related with the flexible exchange rate system
a) This exchange rate system gives the government more flexibility
b) There is no need to maintain larger stock foreign exchange reserves
c) This exchange rate automatically takes care of the surpluses and deficits in the BOP
d) Credibility of the government is must​

Answer 1

Answer:

answer a

This exchange rate system gives the government more flexibility