alleryMatch each foreign exchange rate system with its mechanism:
A1-A, 2-B, 3-C
B1-B, 2-A, 3-C
C1-C, 2-B, 3-A
D1-A, 2-C, 3-B
Answer & Solution
Correct answer: A. 1-A, 2-B, 3-C
Floating is market-driven. Fixed is pegged by government. Managed float combines market with central bank intervention.
Keep practising Open Economy Macroeconomics
Browse all Open Economy Macroeconomics questions for CBSE Class 12 (Arts), or explore more Economics topics.
Related questions
Match each international trade item with its entry in the BOP statement:Match each currency value adjustment term with its context:Match each Balance of Payments (BOP) account with its transaction types:A stronger home currency makes imports cheaper and tends to do what to a current account sIn BoP accounts, how are receipts from abroad and payments to abroad recorded?Ben Bernanke's 2005 paper blamed BoP imbalances mainly on which factor?A BoP crisis occurs when a nation cannot do what?By the BoP identity, a current account surplus is balanced by what?