Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Choose the correct pair:

Options:

A-1

B-2

C-3

D-4

Correct Answer:

A-1

Explanation:

Hedging means protection from risk which arises in future.
Forward market handles transaction of foreign exchange meant for future delivery.
Dirty floating is synonymous or related to managed floating.
Depreciation happens in flexible exchange rate system. We call it devaluation in case of fixed exchange rate system.