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Economics · 2026 · 1 mark
CBSE 2026 · Region 2 · Set 1 · Q4
Read the following statements carefully: Statement 1: Under the flexible exchange rate system, a deficit / surplus in the Balance of Payments is…
Read the following statements carefully :
Statement $\displaystyle 1$ : Under the flexible exchange rate system, a deficit / surplus in the Balance of Payments is automatically corrected.
Statement $\displaystyle 2$ : Under the flexible exchange rate system, there is always a possibility of over/under valuation of currency.
In the light of the above given statements, choose the correct option from the following :
Official answer
(A)
Statement $\displaystyle 1$ is true and Statement $\displaystyle 2$ is false.
Marking-scheme solution
(A)
Statement $\displaystyle 1$ is true and Statement $\displaystyle 2$ is false.
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CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.