Question 50
MediumOriginal questionRead the two statements and choose the correct option.
I. Under managed floating, the RBI fixes the rupee's value at a set number every day.
II. Under managed floating, the RBI's interventions change the supply of or demand for dollars in the market.
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
The RBI does not fix a rate; the market sets it. I is false.
Selling dollars adds to supply; buying them adds to demand. II is true.
- Concept
- How managed floating works
- Typical timeTypical
- 70 s
- Your timeYours
- —
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