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प्रश्न
What is a flexible (floating) exchange rate system?
What is a flexible rate of exchange?
What do you understand by flexible rate of exchange?
लघु उत्तर
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उत्तर
In a system with a flexible exchange rate, supply and demand dictate the exchange rate on the foreign currency market. The central bank in this system lets the exchange rate fluctuate in order to balance the supply and demand of foreign currency. Floating exchange rates are another name for flexible exchange rates.
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Notes
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