McqMate
| Q. |
At present, India is following - |
| A. | Fixed exchange rate |
| B. | Floating exchange rate |
| C. | Pegged up exchange rate |
| D. | Pegged down exchange rate |
| Answer» B. Floating exchange rate | |
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Explanation: Exchange rate can be defined as the value of one currency in terms of another. India follows floating exchange rate system for the determination of the exchange rate. Floating exchange rate system can be defined as a system where the exchange rate between currencies are not fixed but they keep fluctuating, as they are determined by the demand and supply for the domestic currency in the international market. India has been operating on a managed floating exchange rate regime from March 1993, marking the start of an era of a market determined exchange rate regime of the rupee with provision for timely intervention by the central bank |
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