Flexible exchange rate is ........

Economics- Phase (I & II) Balance of Payment and Foreign Exchange Markets

Flexible exchange rate is

Can’t say

Determined

Ordered

Fixed

- Flexible exchange rate is:

- Option 1: Can’t say

- This isn't correct. A flexible exchange rate is not undefined or uncertain.

- Option 2: Determined

- This describes how exchange rates fluctuate based on market forces such as supply and demand.

- Option 3: Ordered

- This isn't applicable. Exchange rates aren't arranged or directed in an orderly manner.

- Option 4: Fixed

- Incorrect for a flexible system. Fixed rates are set by a government, while flexible ones change with market conditions.

- Correct Answer: Option 2: Determined

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