Flexible exchange rate system is also known as __________.

pegged exchange rate system

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dirty floating

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floating exchange rate

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both B and C

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Solution

The correct option is C floating exchange rate
Flexible rate of exchange is the rate which is determined by the supply-demand forces in the foreign exchange market. It is also called 'free exchange rate' or 'floating exchange rate' as it is determined by the free play of supply and demand forces in the international money market.

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Similar questions

(a) What is foreign exchange rate?

(b) How it is determined under fixed and flexible exchange rate system?

(a) What causes disequilibrium in BOP?

(b) Why is flexible exchange rate better than fixed exchange rate system?

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