Question : Which of the following is not a type of exchange rate system?
Option 1: Fixed exchange rate
Option 2: Floating exchange rate
Option 3: Hybrid exchange rate
Option 4: Dual exchange rate
Correct Answer: Hybrid exchange rate
Solution : The correct answer is (c) Hybrid exchange rate
A hybrid exchange rate is not a recognized type of exchange rate system. The commonly recognized types of exchange rate systems are: a) Fixed exchange rate: The value of a country's currency is pegged to a specific reference currency or a basket of currencies, and the exchange rate is maintained at a fixed level. b) Floating exchange rate: The value of a country's currency is determined by market forces of supply and demand, and the exchange rate fluctuates freely. d) Dual exchange rate: A system in which a country has two or more official exchange rates for different purposes or transactions. This is relatively rare and not widely used.
Option 1: Fixed exchange rate system
Option 2: Floating exchange rate system
Option 3: Managed exchange rate system
Option 4: Inflation targeting exchange rate system
Question : Which of the following is not a type of exchange rate regime?
Option 3: Managed float exchange rate
Option 4: Hybrid 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 4: Currency board arrangement
Question : Statement1: Managed floating rate system is a hybrid of fixed exchange rate and a flexible exchange rate system.
Statement 2: Managed floating rate system is also known as Dirty floating.
Option 1: Both the statements are true.
Option 2: Both the statements are false.
Option 3: Statement 1 is true and Statement 2 is false
Option 4: Statement 2 is true and Statement 1 is false
Question : It refers to a system in which exchange rate of a currency is fixed by the government.
Option 2: Flexible exchange rate system
Option 3: Managed floating rate system
Option 4: None of the above.
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