Exchange rate determined by market forces is called:
Options
AFixed Exchange Rate
BFloating Exchange Rate
CPegged Exchange Rate
DManaged Float
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International TradePYQ - July 2021 (Inter)Question 167 of 20
All Questions Correct Answer
✅ Option b — Floating Exchange Rate
All Options:
- AFixed Exchange Rate
- BFloating Exchange Rate
- CPegged Exchange Rate
- DManaged Float
About This Chapter: International Trade
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Theories, Trade Policy, Exchange Rates
This chapter explores trade between nations — why countries trade, the theories of Absolute and Comparative Advantage, Balance of Payments, Exchange Rate systems (Fixed vs Flexible), and India's trade policy including tariffs, quotas, and WTO rules.
View Official ICAI SyllabusExam Strategy Tip
Understand Comparative Advantage theory thoroughly — it's the foundation of international trade. Also focus on the Balance of Payments structure and what causes deficits.
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