CameraIcon

SearchIcon

MyQuestionIcon

2

You visited us 2 times! Enjoying our articles? Unlock Full Access!

Foreign Exchange and Exchange Rate

What is the m...

Question

What is the main feature of a fixed exchange rate?

A

It is pegged at a certain level by the market

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

It is pegged at a certain level by the government

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

It is pegged at a certain level by individuals

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

It is pegged at a certain level by the central bank

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B It is pegged at a certain level by the central bank
In a fixed rate system, the price of the domestic currency in international markets is purely determined by the central bank of the country. It is pegged bilaterally and is artificially maintained at that level by the central bank. It is not allowed to appreciate and depreciate as per the market conditions, the central bank will intervene using forex reserves and hold the exchange rate at the pegged amount.

Suggest Corrections

thumbs-up

0

Similar questions

Q. A dumpy level is set up with its eyepiece vertically over a peg A. The height from the top peg at the center of the eyepiece is 1.540 m and the reading of peg B is 0.705 m. The level is then set over B. The height of the eyepiece above peg B is 1.490 m and a reading on A is 2.195 m. The difference in level between A and B is____.

Q. Two pegs A and B are fixed on opposite bank of 50 m wide river. The level was set up at A and staff reading on peg A and B were observed as 1.350 and 1.55 m respectively. Thereafter the instrument was shifted and set at B. The staff reading on Pegs B and A were observed as 0.75 and 0.55m respectively. If R.L of Peg A is 100.2 m the RL of Peg B (in m)

Q. Two pegs A and B were fixed on opposite banks of a 40 m wide river level was set up at A and the staff readings on pegs A and B were observed as 1.250 m and 1.600 m respectively. Thereafter the Instrument was shifted and set up at B. The staff readings on pegs B and A were observed as 0.800 m and 0.250 m respectively. If the R.L of peg A is 120.450 m then the R.L (in m) of peg B is

Q. A uniform rope of length 13 m tied on peg A on a wall passes over frictionless peg B fixed in level with the peg A as shown in figure. In equilibrium, if the length of the rope hanging between pegs is 8 m, then angle

θ

[in degrees] which rope makes with wall is (Write upto two digits after the decimal point.)

Fiscal deficit for 2017-18 is pegged at

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Foreign Exchange

ECONOMICS

Watch in App

explore_more_icon

Explore more

Foreign Exchange and Exchange Rate

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon