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Question Practice

Which type of exchange rate is determined by market forces without government intervention?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Open Economy Macroeconomics
Question Bank

Which type of exchange rate is...

Single Answer MCQ
Q-00089183

Which type of exchange rate is determined by market forces without government intervention?

1

Fixed exchange rate

2

Managed floating exchange rate

3

Flexible exchange rate

4

Pegged exchange rate

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What is the foreign exchange market primarily used for?

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Q2.

Which of the following accurately defines the exchange rate?

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What happens to demand for foreign exchange if the price of foreign goods increases?

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Q4.

If the exchange rate increases from Rs 50 to Rs 70 per dollar, what has happened to the rupee?

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