Arrange the steps involved in determining the exchange rate in the flexible exchange rate system :
(A) Determination of X-axis (amount of Foreign Exchange in $) and Y-axis (The Exchange Rate)
(B) Marketing of Exchange Rate corresponding to the intersection
(C) Determination of Demand Curve & Supply Curve of Foreign Exchange
(D) Determination the intersection point of Demand & Supply curve
(E) Exchange rate determined
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : (A), (C), (D), (B), (E)
(A) Determination of X-axis (amount of Foreign Exchange in $) and Y-axis (The Exchange Rate)
(C) Determination of Demand Curve & Supply Curve of Foreign Exchange
(D) Determination the intersection point of Demand & Supply curve
(B) Marketing of Exchange Rate corresponding to the intersection
(E) Exchange rate determined