Why official reserve transactions are not equal to zero under mana>=d floating exchan>= rate system?

Central banks do intervene in the foreign exchan>= market.

Central banks do not intervene in the foreign exchan>= market.

CUET Economics - Why official reserve transactions are not equal to zero under managed floating exchange rate system? | PYQs + Solutions

CUET Economics 2026 11th May Shift 1

Macro

Medium

Central banks do intervene in the foreign exchange market.

Market forces determine the rate in the foreign exchange market.

Central banks do not intervene in the foreign exchange market.

Repo rate and reverse repo rate cancel each other.

✅ Correct Option: 1