Question:medium
Read the following statements carefully:
Statement-1: Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system.
Statement-2: Managed floating exchange rate system is also known as ‘hybrid system’.
In the light of the given statements, choose the correct option from the following:
Read the following statements carefully:
Statement-1: Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system.
Statement-2: Managed floating exchange rate system is also known as ‘hybrid system’.
In the light of the given statements, choose the correct option from the following:
Statement-1: Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system.
Statement-2: Managed floating exchange rate system is also known as ‘hybrid system’.
In the light of the given statements, choose the correct option from the following:
Show Hint
‘Managed floating’ = mix of fixed + flexible rates, also termed a ‘hybrid system’.
Updated On: Jan 14, 2026
- Statement 1 is true and Statement 2 is false.
- Statement 1 is false and Statement 2 is true.
- Both Statements 1 and 2 are true.
- Both Statements 1 and 2 are false.
Show Solution
The Correct Option is C
Solution and Explanation
A managed floating exchange rate system, a hybrid model, integrates aspects of both fixed and flexible exchange rate regimes. The central bank intervenes as needed to ensure currency stability. Consequently, both preceding statements are accurate.
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