"First of all I would look at it as not rupee sliding, I would look at it as dollar strengthening, dollar strengthening incessantly" said Nirmala Sitaraman after attending the Annual meetings of the IMF and the world Bank
Based on the above passage, answer the questions mentioned below :
What is the other name for flexible exchange rate system ?
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : Floating exchange rate system
Flexible Exchange Rate: This exchange rate is determined by the market forces of demand and supply. It is also known as Floating Exchange Rate.