Study SimplifyStudy Simplify
NextQ30

Read the following statements carefully : Statement 1 : Depreciation of currency is an economic action undertaken by the government of a nation under the fixed exchange rate system. Statement 2 : Under the floating exchange Rate system, authorities actively intervene in the foreign exchange market by way of maintaining foreign exchange reserves. In the light of the given statements, choose the correct option from the following :

Understanding Foreign Exchange and Exchange RateStudy Simplify SpecialPYQ1MCQ
Question 29

Read the following statements carefully : Statement 1 : Keeping other things constant, there exists positive correlation between the price of foreign exchange and its demand. Statement 2 : The foreign exchange rate indicates a country's purchasing power in international markets. In the light of the given statements, choose the correct option from the following :

29/41
Back to all questions