UPPSC PCS 2024 · Question 116 of 150

Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R). Assertion (A): The value of national currency determined by demand and supply of foreign currency is called flexible exchange rate. Reason (R): Demand and supply of the foreign currency is being determined by the Central Bank. Select the correct answer from the codes given below:

Economy

ABoth (A) and (R) are true and (R) is the correct explanation of (A).
B(A) is false, but (R) is true.
CBoth (A) and (R) are true, but (R) is not the correct explanation of (A).
D(A) is true, but (R) is false.Correct

Answer: D. (A) is true, but (R) is false.

Explanation

Assertion (A): Correct. A flexible exchange rate is determined by the demand and supply of foreign currency in the open market without direct government intervention.

Source: edurev.in UPPSC Prelims 2024 GS Paper I (English); answers per selfstudywala.com detailed solution based on UPPCS official answer key

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