Match List I with List II
List I - Foreign Exchange Rate List II - Derived Meaning A. Fixed exchange rate I. Mixture of fixed and flexible exchange rate system. B. Floating exchange rate II. Determined by government. C. Managed floating III. Expectation of gain from appreciation of the currency D. Speculation IV. Determined by market forces of demand and supply of forex
Choose the correct answer from the options given below:
Match List I with List II
| List I - Foreign Exchange Rate | List II - Derived Meaning |
|---|---|
| A. Fixed exchange rate | I. Mixture of fixed and flexible exchange rate system. |
| B. Floating exchange rate | II. Determined by government. |
| C. Managed floating | III. Expectation of gain from appreciation of the currency |
| D. Speculation | IV. 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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