CBSE 2021 Class 12 Economics Term 1 Paper

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.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.

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.

Go to Question:

Prev Question

Next Question