CUET and UG exam CUET UG 2025 Mock Test Series General Knowledge Economy External Sector and Currency Exchange rate
With reference to the fixed exchange rate system, consider the following statements:
1. In this exchange rate system, the Government fixes the exchange rate at a particular level.
2. In a fixed exchange rate system, when some government action increases the exchange rate (thereby, making domestic currency cheaper) is called Depreciation.
Which of the above statements is/are correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2