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Miscellaneous·2021·Easy

Exchange rates state the value of one currency in terms of other currencies. Which one of the following statements with respect to the exchange rate of currency is correct ?

Exchange rates state the value of one currency in terms of other currencies. Which one of the following statements with respect to the exchange rate of currency is correct ?

Options

  1. a.

    Floating exchange rates are rates in which the Governments interfere by buying or selling their currencies.

  2. b.

    Fixed exchange rates are rates set by Government decisions and maintained by Government actions.

    Correct answer
  3. c.

    Under the Bretton Woods System, the exchange rates are floated in terms of rise or fall in price of gold.

  4. d.

    Under the classical gold standard, the exchange rates are fixed in terms of the price of dollar.

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