Question : _________ is a hybrid system where exchange rate is allowed to float in a managed manner with the control of central bank.
Option 1: Flexible exchange rate
Option 2: Managed floating exchange rate
Option 3: Fixed exchange rate
Option 4: Adjustable peg system
Correct Answer: Managed floating exchange rate
Solution : The correct answer is (b) Managed floating exchange rate
In a managed floating exchange rate system, the exchange rate is determined by market forces of supply and demand, but the central bank intervenes occasionally
Question : Another name of flexible exchange rate system is:
Option 1: Adjustable peg system
Option 2: Dirty floating system
Option 3: Floating exchange system
Option 4: Both (a) and (b)
Question : The principles of management are:
Option 1: Fixed and unchangeable
Option 2: Universal and flexible
Option 3: Specific to each organization
Option 4: Derived from accounting principles
Question : Which of the following is an example of a derivative instrument?
Option 1: Treasury bills
Option 2: Common stocks
Option 3: Options contracts
Option 4: Corporate bonds
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