Economics · Indian Economy
In a market-determined exchange rate system, what primarily determines the Dollar-Rupee exchange rate in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Fixed parity set by the International Monetary Fund
- 2Direct and constant government control
- 3Monetary policy updates by the RBI
- 4Demand and supply forces in the foreign exchange market✓
Correct answer
Demand and supply forces in the foreign exchange market
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