Question : Which of the following statement is correct?

• Under manage floating rate system, central bank maintains reserves of foreign exchange
• Manage floating rate system is also known as Dirty floating.

Question : Which of the following statement is correct?

• Currency depreciation leads to increase in exports.
• Fixed exchange rate system is also pegged exchange rate system.

Question : Which of the following statement is correct?

• Foreign exchange is demanded to make the payment for imports of goods and services.
• Foreign exchange is needed to meet expenditure incurred in foreign tours.

Question : Which of the following statement is correct?

• Supply for foreign exchange arise when people wants to make gains from appreciation of currency.
• Loans from foreign country are raised in foreign currency. So foreign currency is needed to repay such

Question : Which of the following statement is correct?

• Supply of foreign exchange come through imports of goods and services.
• The amount which foreigners invest in the home country, increases the supply of foreign exchange.