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Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsOpen Economy Macroeconomics1 Mark
Question
_______ is a situation when 'managed floating' is exercised by the Central Bank.
  1. Crawling peg
  2. Spot market
  3. Dirty floating
  4. None of these
✓

Answer

  1. Dirty floating

Explanation:

Dirty floating means when a country manipulates the exchange rate by not following rules and regulations then central Bank intervene to check such situation.

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