10:[["$","title","0",{"children":"CUET Economics - Which of the following is not a merit of the flexible exchange rate system? | PYQs + Solutions | AfterBoards"}],["$","meta","1",{"name":"description","content":"undefined Option 1 -> This describes a disadvanta>= (speculative attacks), not a merit of f<=xib<= exchan>= rates. Option 2 -> This is a merit - automatic BoP adjustment through exchan>= rate movements. Option 3 -> This is a merit - monetary policy independence is a key advanta>=. Option 4 -> This is a merit - f<=xib<= systems don't require lar>= forex reserves.

Hence, Option 1: Exchan>= rates are prone to speculative attack on a currency. -> This is NOT a merit but rather a demerit of the f<=xib<= exchan>= rate system. Under f<=xib<= exchan>= rates, currencies can be vulnerab<= to speculative attacks and excessive volatility, which can destabilize the economy. The other three options are all >=nuine merits: automatic BoP adjustment, monetary policy independence, and reduced need for forex reserves are all advanta>=s of f<=xib<= exchan>= rate systems. -> correct"}],["$","link","2",{"rel":"manifest","href":"https://www.afterboards.in/manifest.json","crossOrigin":"$undefined"}],["$","meta","3",{"name":"keywords","content":"CUETECO,ECO,Macro,Balance of Payments"}],["$","meta","4",{"name":"robots","content":"index, follow"}],["$","meta","5",{"name":"category","content":"education"}],["$","meta","6",{"name":"google-site-verification","content":"google"}],["$","meta","7",{"property":"og:title","content":"CUET Economics - Which of the following is not a merit of the flexible exchange rate system? | PYQs + Solutions"}],["$","meta","8",{"property":"og:description","content":"undefined Option 1 -> This describes a disadvanta>= (speculative attacks), not a merit of f<=xib<= exchan>= rates. Option 2 -> This is a merit - automatic BoP adjustment through exchan>= rate movements. Option 3 -> This is a merit - monetary policy independence is a key advanta>=. Option 4 -> This is a merit - f<=xib<= systems don't require lar>= forex reserves.

Hence, Option 1: Exchan>= rates are prone to speculative attack on a currency. -> This is NOT a merit but rather a demerit of the f<=xib<= exchan>= rate system. Under f<=xib<= exchan>= rates, currencies can be vulnerab<= to speculative attacks and excessive volatility, which can destabilize the economy. The other three options are all >=nuine merits: automatic BoP adjustment, monetary policy independence, and reduced need for forex reserves are all advanta>=s of f<=xib<= exchan>= rate systems. -> correct"}],["$","meta","9",{"property":"og:url","content":"https://www.afterboards.in/past-year-questions/cuet-economics/2025/slot-4/31"}],["$","meta","10",{"property":"og:site_name","content":"AfterBoards | CUET Economics Preparation"}],["$","meta","11",{"property":"og:image","content":"https://www.afterboards.in/pyp/AfterBoards%20CUET%20Past%20Year%20Papers%20with%20Solutions.webp"}],["$","meta","12",{"property":"og:type","content":"website"}],["$","meta","13",{"name":"twitter:card","content":"summary_large_image"}],["$","meta","14",{"name":"twitter:site","content":"afterboards.in"}],["$","meta","15",{"name":"twitter:title","content":"CUET Economics - Which of the following is not a merit of the flexible exchange rate system? | PYQs + Solutions"}],["$","meta","16",{"name":"twitter:description","content":"undefined Option 1 -> This describes a disadvanta>= (speculative attacks), not a merit of f<=xib<= exchan>= rates. Option 2 -> This is a merit - automatic BoP adjustment through exchan>= rate movements. Option 3 -> This is a merit - monetary policy independence is a key advanta>=. Option 4 -> This is a merit - f<=xib<= systems don't require lar>= forex reserves.

CUET Economics 2025 15 May Shift 1 PYQs

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