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Match List I with List II

List I - Foreign Exchange RateList II - Derived Meaning
A. Fixed exchange rateI. Mixture of fixed and flexible exchange rate system.
B. Floating exchange rateII. Determined by government.
C. Managed floatingIII. Expectation of gain from appreciation of the currency
D. SpeculationIV. Determined by market forces of demand and supply of forex

Choose the correct answer from the options given below:

Solution

Correct Option: 2

Fixed exchange rate is determined by the government (II). Floating exchange rate is determined by market forces of demand and supply of forex (IV). Managed floating is a mixture of fixed and flexible systems (I). Speculation involves expectation of gain from appreciation of the currency (III). Hence A-II, B-IV, C-I, D-III.

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