1.

Mention the benefits of flexible exchange rate.

Answer»

Following are the benefits of flexible exchange rate :

  1. In flexible exchange rate system, this is.no compulsion of incurring expenditure by Reserve Bank for keeping foreign exchange reserve.
  2. Due to flexible exchange rate system, the obstacles that might emerge between the international trade and capital traffic are removed.
  3. It helps in getting rid of problems like devaluation and revaluation.


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