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प्रश्न
How is flexible rate of exchange determined?
Explain how flexible rate of exchange is determined.
स्पष्ट कीजिए
अति संक्षिप्त उत्तर
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उत्तर १
The flexible exchange rate is set based on the demand and supply of the respective currencies in the foreign exchange market.
shaalaa.com
उत्तर २
A flexible exchange rate is determined by the demand and supply of different currencies in the foreign exchange market.
- If demand for a currency increases, its value rises.
- If supply increases or demand falls, its value drops.
There is no government control, and the rate changes freely based on trade, investments, inflation, interest rates, and overall economic conditions.
shaalaa.com
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