Question : What is the term used to describe the exchange rate regime where a currency's value is fixed to another currency or a basket of currencies?

Option 1: Floating exchange rate
 

Option 2: Managed float exchange rate
  

Option 3: Pegged exchange rate

Option 4: Currency board arrangement

Question : What is the term used to describe the practice of pegging a currency to a more stable foreign currency?

Option 1: Fixed exchange rate
  

Option 2: Flexible exchange rate
 

Option 3: Managed float exchange rate

Option 4: Currency board arrangement

Question : A country's central bank can intervene in the foreign exchange market to influence the value of its currency. This is known as ________.

Option 1: exchange rate targeting
 

Option 2: currency manipulation
 

Option 3: foreign exchange intervention

Option 4: exchange rate pegging

Question : The Indian Government launched Incredible India campaign to promote tourism in India? How it will impact the exchange rate?

Option 1: Appreciation of domestic currency
 

Option 2: Outflow of foreign exchange
 

Option 3: Depreciation of domestic currency

Option 4: None

Question : The real exchange rate is a measure of:

Option 1: Purchasing power of one currency relative to another.
 

Option 2: Exchange rate fluctuations in the short term.
 

Option 3: The value of a currency in terms of gold.

Option 4: Speculative movements in the foreign exchange market.