Q48
India s foreign exchange rate system is?
A.
Fixed target
B.
Managed float
AnswerC.
Free float
D.
Fixed and Float
Answer: Option B
Solution
Answer: Option B
Solution:
In India, the exchange rate system is managed floating (from 1994 onwards) and hence the relevant currency movements are appreciation and depreciation. Here, the exchange rate is determined in the open market through the pressure of buying and selling of foreign currencies.