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प्रश्न
Statement-1: Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system.
Statement-2: Managed floating exchange rate system is also known as ‘hybrid system’.
In the light of the given statements, choose the correct option from the following:
पर्याय
Statement 1 is true and Statement 2 is false.
Statement 1 is false and Statement 2 is true.
Both Statements 1 and 2 are true.
Both Statements 1 and 2 are false.
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उत्तर
Both Statements 1 and 2 are true.
Explanation:
Fixed and flexible exchange rate systems work together in a managed floating exchange rate system. The exchange rate is set by market forces, but the Central Bank can step in to prevent changes from becoming too large. The managed floating exchange rate system is often called a “hybrid system” because it combines elements of both fixed and flexible systems.
