Question : Which of the following exchange rate systems allows the exchange rate to be freely determined by market forces but with occasional central bank intervention?

Option 1: Crawling peg exchange rate
 

Option 2: Fixed exchange rate
   

Option 3: Floating exchange rate

Option 4: Managed float exchange rate

Question : A ________ exchange rate is determined by the forces of supply and demand in the foreign exchange market.

Option 1: fixed
 

Option 2: floating
 

Option 3: managed

Option 4: pegged

Question : Which of the following exchange rate systems provides the highest level of exchange rate stability?

Option 1: Floating exchange rate
   

Option 2: Fixed exchange rate ‘ 
 

Option 3: Managed float exchange rate

Option 4: Pegged exchange rate

Question : Which of the following exchange rate systems is a combination of fixed and floating exchange rates, where the central bank occasionally intervenes in the foreign exchange market?

Option 1: Managed float exchange rate
  

Option 2: Pegged exchange rate
 

Option 3: Currency board arrangement

Option 4: Crawling peg exchange rate

Question : Which of the following exchange rate systems allows for fluctuations in currency values but with some intervention by the central bank?

Option 1: Floating exchange rate
  

Option 2: Fixed exchange rate
   

Option 3: Pegged exchange rate

Option 4: Managed float exchange rate