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Management · Q76

International Finance and Treasury

Graduate and Post Graduate · Management · question 76

Q76

According to classification by IMF, the currency system of India falls under

A.
managed floating
Answer
B.
independently floating
C.
crawling peg
D.
pegged to basket of currencies

Answer: Option A

Solution

Answer: Option A
Solution:
According to classification by IMF, the currency system of India falls under managed floating. Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies to maintain a certain range.