Question:

Exchange rate determined by the market forces of demand and supply is known as:

Updated On: Oct 18, 2024

Fixed exchange rate
Current exchange rate
Constant exchange rate
Floating exchange rate

Hide Solution

Verified By Collegedunia

The Correct Option is D

Solution and Explanation

The correct option is (D) :Floating exchange rate

Was this answer helpful?

Top Questions on Money Market

Consider a closed economy IS-LM model. The goods and the money market equations are respectively given as follows:
$ 𝑌 = 90 + 0.8𝑌_𝑑 − 100𝑖 + 𝐺$
$𝑀_𝑠 = 750 + 0.2𝑌 − 260𝑖$
where, 𝑌 = national income; $𝑌_𝑑$ = disposable income; 𝑇 = total tax given by 𝑇 = 5 + 0.2𝑌; 𝑖 = interest rate; 𝐺 = government expenditure = 300; $ 𝑀_𝑠$ = constant money supply = 950.
The value of 𝑇 at equilibrium 𝑌 is _______. (rounded off to the nearest integer).
- IIT JAM EN - 2024
- Macroeconomics
- Money Market
View Solution
Match List - I with List- II.
List - I List - II
(A) MPC (I) $\frac{1}{(1-MPC)}$
(B) AD (II) $\frac{\Delta c}{\Delta y}$
(C) K (III) C+1
(D) If MPC = 0 (IV) K=1

Choose the correct answer from the options given below:
- CUET (UG) - 2023
- Economics
- Money Market
View Solution
Calculate the Gross Domestic Product at market price for the data given below.
₹
$NNP_FC$ 380
Normal wear and tear 40
Subsidies (Net) 40
Intermediate Cost 120
Net factor income to Abroad (-20)
- CUET (UG) - 2023
- Economics
- Money Market
View Solution
Suppose the US interest rate is 3% per annum. The ₹-$ exchange rate in spot market is 80 and in 3-month forward market is 81. What is the per annum return on US bond in rupee terms?
- CUET (PG) - 2023
- Economics
- Money Market
View Solution
"Cooperative marketing have received a set back during the recent past". Choose the option that is not true for the above statement.
- CUET (UG) - 2023
- Economics
- Money Market
View Solution

List - I	List - II
(A) MPC	(I) \(\frac{1}{(1-MPC)}\)
(B) AD	(II) \(\frac{\Delta c}{\Delta y}\)
(C) K	(III) C+1
(D) If MPC = 0	(IV) K=1

	₹
\(NNP_FC\)	380
Normal wear and tear	40
Subsidies (Net)	40
Intermediate Cost	120
Net factor income to Abroad	(-20)

View More Questions

Questions Asked in CUET exam

View More Questions