Question

Identify the correctly matched pair from Column A to that of Column B:

Column A		Column B
(1)	Flexible Exchange Rate	(a)	Foreign Exchange Rate is determined by the Central Bank.
(2)	Fixed Exchange Rate	(b)	The foreign exchange rate is determined by the demand and supply.
(3)	Managed Flexible Rate	(c)	The Central Bank interferes with the market demand and supply of foreign currency.
(4)	Managed Fixed Rate	(d)	The Central Bank controls the foreign rate regime

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

The managed floating exchange rate system is a hybrid of the flexible and fixed exchange rate system of grading The central bank is in charge of this system. intervenes in the market to buy and sell foreign currencies. Attempt to keep exchange rate fluctuations in check.