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Match List - I with List - II.

List - I | List - II

(A) Flexible exchange rate | (I) Market forces

(B) Devaluation | (II) Pegged exchange rate

(C) Fixed exchange rate | (III) Floating exchange rate

(D) Depreciation | (IV) Government

Choose the correct answer from the options given below :

Solution

Correct Option: 3

Flexible exchange rate is also called Floating exchange rate (III). Devaluation is done by the Government under a fixed regime (IV). Fixed exchange rate is a Pegged exchange rate (II). Depreciation occurs due to Market forces under a flexible regime (I). So A-III, B-IV, C-II, D-I.

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