A) Fixed exchange rate is determined by the government
B) Flexible exchange rate is determined by market forces (demand and supply of foreign exchange)
C) Both [a] and [b]
D) None of the above
Correct Answer: C
Solution :
There are majorly two types of exchange rate systems. Fixed exchange rate system is governed by the central bank while flexible exchange rate system by the market forces.You need to login to perform this action.
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