Q: Exchange rate refers to the price of one currency in terms of other currencies. Which of the following statements about exchange rates is correct?
(a)Floating exchange rates are rates in which the Governments interfere by buying or selling their currencies.
(b)Fixed exchange rates are rates set by Government decisions and maintained by Government actions.
(c)Under the Bretton Woods System, the exchange rates are floated in terms of rise or fall in price of gold.
(d)Under the classical gold standard, the exchange rates are fixed in terms of price of dollar.
Correct Answer: (b)
The correct answer is (d) 'In a crawling-peg system, exchange rates are fixed exclusively with reference to the US-dollar reserves.'. This question from the Geography domain tests knowledge of Economic & Mineral Geography.