India's foreign exchange rate system is - Economy MCQ Macroeconomics 2026 | ExamTest.live | ExamTest.live

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India's foreign exchange rate system is

A $free float$
B $fixed$
C $managed float$
D $fixed target of bond$

Solution & Step-by-step Explanation

India utilizes a managed floating exchange rate system (often described as a dirty float), wherein the exchange value of the Rupee is determined by free-market demand and supply forces, but the Reserve Bank of India occasionally steps in to curb extreme marketplace fluctuations and volatility.

Practice this question

Try it yourself before checking the explanation above.

India's foreign exchange rate system is

A

free float

B

fixed

C

managed float

D

fixed target of bond

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