CUET Economics 2025 29 May Shift 2 - Choose the correct statements from the following in respect of exchange rate system. (A) Floating Exchange Rate exchange rate is determined by the market forces of demand and supply. (B) In a fixed exchange rate system, making domestic currency cheaper is called Devaluation. (C) Increase in exchange rate implies that the price of foreign currency has increased and is called depreciation. (D) Exchange rates between any two currencies adjust to reflect differences in the price levels in the two countries. Choose the correct answer from the options given below: | PYQs + Solutions

CUET Economics 2025 29 May Shift 2

Macro

Medium

(A), (B) and (C) only

(A), (B) and (D) only

(B), (C) and (D) only

(A), (B), (C) and (D)

✅ Correct Option: 4

Related questions:

28 May Shift 1

Match the following:

List -I	List -II
(A) Direct Investment	(I) Bilateral Loans
(B) Portfolio Investment	(II) Equity Capital
(C) External Borrowing	(III) Off Shore Funds
(D) External Assistance	(IV) Short Term Debt

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

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

29 May Shift 2

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?

21 May Shift 1

Under the fixed exchange rate regime, if the government of a country finds its currency to be overvalued and therefore deliberately reduces the value of its current against the foreign currency, it will be called as?

CUET Economics 2025 29 May Shift 2 PYQs

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