Question:
Under the ________ Exchange Rate System, the Central Bank can control the rise/fall of foreign exchange rate in a range-bound manner. (Fill up the blank with the correct alternative.)
Under the ________ Exchange Rate System, the Central Bank can control the rise/fall of foreign exchange rate in a range-bound manner. (Fill up the blank with the correct alternative.)
Show Hint
Managed floating is a hybrid system combining market-driven exchange rates with occasional Central Bank intervention.
Updated On: Jan 13, 2026
- fixed
- flexible
- managed floating
- gold standard
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Under the managed floating exchange rate system, the exchange rate is primarily market-driven, but the Central Bank intervenes to stabilize it within a specified range.
Was this answer helpful?
0
0
Top Questions on Foreign Exchange Rate
- Distinguish between Balance of Payment and Balance of Trade.
- CBSE CLASS XII - 2025
- Economics
- Foreign Exchange Rate
- State one example of External Assistance as a component of capital account.
- CBSE CLASS XII - 2025
- Economics
- Foreign Exchange Rate
- Using suitable example, distinguish between Foreign Direct Investments (FDI) and Foreign Institutional Investments (FII).
- CBSE CLASS XII - 2025
- Economics
- Foreign Exchange Rate
- Define Current Account Surplus.
- CBSE CLASS XII - 2025
- Economics
- Foreign Exchange Rate
- Distinguish between Balance of Payments and Balance of Trade.
- CBSE CLASS XII - 2025
- Economics
- Foreign Exchange Rate
View More Questions
Questions Asked in CBSE CLASS XII exam
- Vishesh, Manik and Amit were partners in the ratio 5 : 4 : 1. Amit retired on 31st March, 2024. Vishesh and Manik decided to share Amit’s share in the ratio 2 : 3. What will be the new profit sharing ratio between Vishesh and Manik?
- CBSE CLASS XII - 2025
- Retirement and Death of a Partner
- The electric field in a region is given by \( \vec{E} = 40x \hat{i} \, \text{N/C}. \) Find the amount of work done in taking a unit positive charge from a point (0, 3m) to the point (5m, 0).
- CBSE CLASS XII - 2025
- Electrostatics
- Consider the Linear Programming Problem, where the objective function \[ Z = x + 4y \] needs to be minimized subject to the following constraints: \[ 2x + y \geq 1000, \] \[ x + 2y \geq 800, \] \[ x \geq 0, \quad y \geq 0. \] Draw a neat graph of the feasible region and find the minimum value of $Z$.
- CBSE CLASS XII - 2025
- Linear Programming Problem
- A rectangular glass slab ABCD (refractive index 1.5) is surrounded by a transparent liquid (refractive index 1.25) as shown in the figure. A ray of light is incident on face AB at an angle \(i\) such that it is refracted out grazing the face AD. Find the value of angle \(i\).
- CBSE CLASS XII - 2025
- Refraction
- Considering the case of magnetic field produced by air-filled current carrying solenoid, show that the magnetic energy density of a magnetic field \( B \) is \( \frac{B^2}{2\mu_0} \).
- CBSE CLASS XII - 2025
- Magnetic Field
View More Questions