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Question
______ system allows continuous and regular adjustments in the exchange rate.
Options
Wider bands
Crawling peg
Managed floating
None of the above
MCQ
Fill in the Blanks
Solution
The crawling peg system allows continuous and regular adjustments in the exchange rate.
Explanation:
The crawling peg system allows for regular and continual exchange rate modifications. At any given time, just 1% of the variation is allowed.
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Foreign Exchange Market - Determination of the Exchange Rate
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