Central banks intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. What is this move called? Option 1: Managed floating. Option 2: Official reserve transactions. Option 3: Balance of payments. Option 4: Autonomous and accommodating transactions.

The answer is 'Managed floating.'. View full solution:

CUET Economics - Central banks intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. What is this move called? | PYQs + Solutions

CUET Economics 2025 29 May Shift 2

Macro

Medium

Managed floating.

Official reserve transactions.

Balance of payments.

Autonomous and accommodating transactions.

✅ Correct Option: 1

Related questions:

28 May Shift 1

Arrange the following in correct sequence with respect to exchnage rate :-

(A) The central bank purchases dollars to absorb the excess supply.

(B) The exchange rate is fixed by the government higher than the market rate of exchange.

(D) Supply of the dollars exceeds the demand for the dollar.

Choose the correct answer from the options given below:

28 May Shift 1

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Which of the following combination is a correct match of the above?

13 May Shift 2

Match List-I with List-II

Choose the correct answer from the options given below: