According to classification by IMF, the currency system of India falls under

A. managed floating

B. independently floating

C. crawling peg

D. pegged to basket of currencies

Answer: Option A

Solution(By Examveda Team)

According to classification by IMF, the currency system of India falls under managed floating. Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies to maintain a certain range.