CUET Preparation Today
| Which of the following determines "Equilibrium exchange rate" in the foreign exchange market in India? |
International Monetary Fund Reserve Bank of India World Bank Demand and supply |
| Demand and supply |
| Just like equilibrium for commodity market, equilibrium exchange rate in the foreign exchange market in India is determined by the forces demand and supply. India has a managed floating exchange system where market demand and supply determine exchange rate and there is intervention by RBI sometimes to manage the exchange rate. |
