{"id":49772,"date":"2024-04-15T23:00:40","date_gmt":"2024-04-15T23:00:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49772"},"modified":"2024-04-15T23:00:40","modified_gmt":"2024-04-15T23:00:40","slug":"which-among-the-following-statement-is-incorrect","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-among-the-following-statement-is-incorrect\/","title":{"rendered":"Which among the following statement is INCORRECT?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Floating exchange rate system works on the market mechanism&#8221; option2=&#8221;Floating exchange rate breeds uncertainties and speculation&#8221; option3=&#8221;Economic and political factors and value judgement influence the choice of the exchange rate system&#8221; option4=&#8221;The system of floating exchange rate requires comprehensive government intervention&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. The system of floating exchange rate requires comprehensive government intervention.<\/p>\n<p>A floating exchange rate system is one in which the value of a currency is determined by supply and demand in the foreign exchange market. This means that the government does not intervene to set or manage the exchange rate.<\/p>\n<p>Floating exchange rates can breed uncertainties and speculation. This is because the value of a currency can fluctuate significantly, which can make it difficult for businesses to plan for the future and for investors to make sound investment decisions.<\/p>\n<p>Economic and political factors and value judgement influence the choice of the exchange rate system. For example, a country with a high level of inflation may choose to adopt a floating exchange rate system in order to reduce the impact of inflation on its currency.<\/p>\n<p>In conclusion, the system of floating exchange rate does not require comprehensive government intervention. In fact, government intervention can often destabilize the exchange rate and make it more difficult for businesses and investors to operate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Floating exchange rate system works on the market mechanism&#8221; option2=&#8221;Floating exchange rate breeds uncertainties and speculation&#8221; option3=&#8221;Economic and political factors and value judgement influence the choice of the exchange rate system&#8221; option4=&#8221;The system of floating exchange rate requires comprehensive government intervention&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-49772","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which among the following statement is INCORRECT?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-among-the-following-statement-is-incorrect\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which among the following statement is INCORRECT?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Floating exchange rate system works on the market mechanism&#8221; 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