Question : Which of the following statement is correct?

• Increase in demand for foreign goods means increase in demand for foreign currency.
• Under a manage floating exchange rate system, the government directly controls the exchange rate.

Question : Statement1: Managed floating rate system is a hybrid of fixed exchange rate and a flexible exchange rate system.

Statement 2: Managed 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?

• Supply of foreign exchange increases in the form of gifts and other remittance from abroad.
• Supply of foreign exchange comes from those who wants to speculate on the value of foreign

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.