CBSE 2021 Class 12 Economics Term 1 Paper

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Question : 46
Total: 60
Read the following statements-Assertion (A) and Reason (R), choose one of the correct alternative given below:
Assertion (A): Managed floating exchange rate system is also known as 'hybrid system'.
Reason (R): Managed floating exchange rate system is a combination of a flexible and fixed exchange rate system.
Solution:  
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Explanation: Managed floating exchange rate is a combination of flexible exchange rate (the float part) and a fixed exchange rate (the managed part). This system is also known as the Hybrid System.
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