Which among the following statement is INCORRECT ........

Economics- Phase (I & II) Business Cycles

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Which among the following statement is INCORRECT?

Floating exchange rate system works on the market mechanism

Floating exchange rate breeds uncertainties and speculation

Economic and political factors and value judgement influence the choice of the exchange rate system

The system of floating exchange rate requires comprehensive government intervention

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Explanation:

A floating exchange rate is one that is determined by supply and demand on the open market. A floating exchange rate doesn't mean countries don't try to intervene and manipulate their currency's price, since governments and central banks regularly attempt to keep their currency price favorable for international trade.