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The fixed exchange rate is determined by the Reserve Bank of India.
- a)True
- b)False
- c)Partially true
- d)Incomplete statement
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
The fixed exchange rate is determined by the Reserve Bank of India.a)T...
Explanation:
Fixed Exchange Rate Determination:
- The fixed exchange rate is determined by the Reserve Bank of India.
- This statement is true.
Role of Reserve Bank of India:
- The Reserve Bank of India plays a crucial role in determining and maintaining the fixed exchange rate.
- It manages the exchange rate by buying or selling its own currency in the foreign exchange market to keep the value of the currency stable.
- The RBI intervenes in the market to ensure that the exchange rate stays within the specified limits set by the government.
Importance of Fixed Exchange Rate:
- A fixed exchange rate system provides stability and predictability for businesses engaged in international trade.
- It helps in controlling inflation and maintaining economic stability in the country.
- However, maintaining a fixed exchange rate requires a strong reserve of foreign currency to intervene in the market when needed.
Conclusion:
- The Reserve Bank of India plays a vital role in determining and regulating the fixed exchange rate to ensure stability in the currency value and facilitate international trade and economic growth.
Fixed Exchange Rate Determination:
- The fixed exchange rate is determined by the Reserve Bank of India.
- This statement is true.
Role of Reserve Bank of India:
- The Reserve Bank of India plays a crucial role in determining and maintaining the fixed exchange rate.
- It manages the exchange rate by buying or selling its own currency in the foreign exchange market to keep the value of the currency stable.
- The RBI intervenes in the market to ensure that the exchange rate stays within the specified limits set by the government.
Importance of Fixed Exchange Rate:
- A fixed exchange rate system provides stability and predictability for businesses engaged in international trade.
- It helps in controlling inflation and maintaining economic stability in the country.
- However, maintaining a fixed exchange rate requires a strong reserve of foreign currency to intervene in the market when needed.
Conclusion:
- The Reserve Bank of India plays a vital role in determining and regulating the fixed exchange rate to ensure stability in the currency value and facilitate international trade and economic growth.
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Community Answer
The fixed exchange rate is determined by the Reserve Bank of India.a)T...
The fixed exchange rate is determined by the government of the country.
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The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer?
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The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer?.
The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The fixed exchange rate is determined by the Reserve Bank of India.a)Trueb)Falsec)Partially trued)Incomplete statementCorrect answer is option 'B'. Can you explain this answer?.
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