Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Exchange Rate Determination Post-Reform
After reforms, exchange rates are mostly determined by:
- Government decree
- Demand and supply of foreign exchange in the market — Correct Answer
- World Bank decisions
- RBI fixing rates daily
Explanation:
Correct Answer Explanation
Now markets determine exchange rates based on demand and supply of foreign exchange.
Key Points:
- Rupee devaluation in 1991 set the tone to free exchange rate determination from government control.
- This is part of foreign exchange market reforms.
📚 About this Topic — CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL
This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
