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Summary Foreign exchange and bop

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Sixth Year / 12th Grade
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,FOREIGN EXCHANGE RATE

,Q.1) “Due to fall in the value of Indian currency (₹) in the foreign exchange market, the Reserve Bank of India dec
buy Indian currency (₹).”
This type of action by the Central Bank is possible under _____________ exchange rate system. (Choose the cor
alternative to fill up the blank)
a) Flexible
b) Managed floating
c) Fixed floating
d) Fixed

, Q.2) Under _______ exchange rate system, the Central Bank and Government of the country do not have any au
interfere in the exchange rate determination. (Choose the correct alternative to fill in the blank)
a) fixed
b) floating
c) managed floating
d) gold standard
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