A country allows its currency to fluctuate freely in the international market. The value of its currency rises when exports are high and falls when imports exceed exports. The government does not intervene in determining the exchange rate. Which type of exchange rate system is being followed?

Options:

• A: Fixed exchange rate
• B: Floating exchange rate
• C: Managed floating exchange rate
• D: Pegged exchange rate

Related Practice Questions:

• Which of the following artifacts, extensively found at Burzahom and Gufkral, specifically indicates that the Neolithic inhabitants of Kashmir practiced sewing animal skins for clothing to survive the harsh winters?
• The earliest known evidence of rock art in India, in the form of 'Cupules' (hemispherical cup-shaped depressions carved into rock), belongs to the Lower Paleolithic age and was found at:
• The first human colonization of the fertile Ganga plains, as evidenced by archaeological discoveries at Sarai Nahar Rai and Mahadaha, took place during which period?
• Which prehistoric site located in the Thar Desert of Rajasthan provides a continuous and undisturbed profile of Lower, Middle, and Upper Paleolithic cultures?