CUET Economics - Identify the exchange rate system in which central bank of a country intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. | PYQs + Solutions

CUET Economics 2025 22 May Shift 2

Macro

Medium

Moderate floating.

Dirty floating.

Flexible exchange rate.

Fixed exchange rate.

✅ Correct Option: 2

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22 May Shift 2

Arrange the following statements related to foreign exchange market (fixed exchange rate) in correct sequence.

(A) RBI intervenes to purchase the dollars for rupees in the foreign exchange market in order to absorb this excess supply.

(B) The government will fix a higher exchange rate by making the rupee cheaper for foreigners.

(D) The Indian government wants to encourage exports.

Choose the correct answer from the options given below:

CUET Economics 2025 22 May Shift 2 PYQs