Floating Exchange Rate is also referred to as - (1) Flexible Exchange Rate (2) Fixed Exchange Rate (3) Real Exchange Rate (4) Controlled Exchange Rate

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Answer :

(1) Flexible Exchange Rate Explanation: A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.

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