Question : What term is used to describe the situation when a country's currency value is fixed to another currency or a basket of currencies?

Option 1: Floating exchange rate.
 

Option 2: Managed float system.
  

Option 3: Fixed exchange rate.

Option 4: Pegged exchange rate.

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 : It refers to a system in which exchange rate of a currency is fixed by the government.
 

Option 1: Fixed exchange rate system
 

Option 2: Flexible exchange rate system
 

Option 3: Managed floating rate system
 

Option 4: None of the above.
 

Question : Identify which of the following statements is true?

Option 1: The flexible exchange rate system gives the government more flexibility to maintain large stocks of foreign exchange reserves
 

Option 2: In the Managed floating exchange rate system, the government intervenes to buy and sell foreign currencies.
 

Option 3: In the Managed floating exchange system, the central bank intervenes to moderate exchange rate fluctuations

Option 4: In the Fixed exchange rate system, market forces fix the exchange rate.

Question : Which of the following is not a fixed exchange rate system?

Option 1: Floating exchange rate
 

Option 2: Pegged exchange rate
   

Option 3: Managed float exchange rate

Option 4: Currency board arrangement