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What is the type of foreign exchange rate system in India?

  1. A
    Freely floating
  2. B
    Fixed
  3. C
    Managed floating
  4. D
    Fixed target of bonds

Solution & Step-by-step Explanation

India utilizes a 'Managed Floating Exchange Rate System'. The exchange rate of the Rupee is determined by market forces of demand and supply, but the RBI actively intervenes to curb extreme volatility.

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What is the type of foreign exchange rate system in India?
A
Freely floating
B
Fixed
C
Managed floating
D
Fixed target of bonds

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EconomicsMonetary PolicyForeign Exchange

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