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Question

Flexible exchange rate system is also known as __________.
  1. dirty floating
  2. pegged exchange rate system
  3. floating exchange rate
  4. both B and C

A
both B and C
B
pegged exchange rate system
C
dirty floating
D
floating exchange rate
Solution
Verified by Toppr

Flexible rate of exchange is the rate which is determined by the supply-demand forces in the foreign exchange market. It is also called 'free exchange rate' or 'floating exchange rate' as it is determined by the free play of supply and demand forces in the international money market.

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