Question

5. Identify which of the following statements is true (Choose the correct alternative)

(a) Exchange rate of a currency is same as paper value of that currency

(b) Exchange rate is the price of a currency expressed in terms of gold

(c) Managed floating is also known as dirty floating

(d) Revaluation leads to a rise in supply of foreign currency

Answer 1

Answer:

Identify which of the following statements is true? a. The flexible exchange rate system gives the government more b. In the Managed floating exchange rate system, the government intervenes to buy and sell foreign currencies. c. In the Managed floating exchange rate system, the central bank intervenes to moderate exchange rate fluctuations. d. In the Fixed exchange rate system, market forces fix the exchange rate class-12 Share It On Please log in or register to answer this question. 1 Answer +1 vote answered Nov 4, 2020 by Eihaa (50.7k points) c. In the Managed floating exchange rate system, the central bank intervenes to moderate exchange rate fluctuations.

Explanation:

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