Vidyalelo
Management · Q38

International Finance and Treasury

Graduate and Post Graduate · Management · question 38

Q38

Two tier exchange rate system is a form of

A.
Different exchange rate
B.
Fixed rate
C.
Multiple exchange rate
Answer
D.
Flexible rate

Answer: Option C

Solution

Answer: Option C
Solution:
Two tier exchange rate system is a form of Multiple exchange rate. In a multiple exchange rate system, the concept is the same, except the market is divided into many different segments, each with its own foreign exchange rate, whether fixed or floating.