Question : In a floating exchange rate system, exchange rates are determined by:

Option 1: Market forces of supply and demand
 

Option 2: Government intervention
    

Option 3: Central bank policies

Option 4: Fixed exchange rates

Question : In a floating exchange rate system, the exchange rate is primarily determined by:

Option 1: Market forces of supply and demand.
  

Option 2: Government interventions.
 

Option 3: Balance of trade.

Option 4: Interest rate differentials.

Question : Which of the following exchange rate systems allows the exchange rate to be determined solely by market forces of supply and demand?

Option 1: Fixed exchange rate
  

Option 2: Floating exchange rate
 

Option 3: Managed float exchange rate

Option 4: Pegged exchange rate

Question : A ________ exchange rate is determined by the forces of supply and demand in the foreign exchange market.

Option 1: fixed
 

Option 2: floating
 

Option 3: managed

Option 4: pegged

Question : It refers to a system in which exchange rate is determined by forces of demand and supply of different currencies in the foreign exchange market.
 

Option 1: Fixed exchange rate system
 

Option 2: Flexible exchange rate system
 

Option 3: Managed floating rate system
 

Option 4: None of the above.