Assertion (A): The value of national currency determined by demand and supply of foreign currency is called flexible exchange rate.

Reason (R): Demand and supply of the foreign currency is being determined by the Central Bank.

A) Both (A) and (R) are true and (R) is the correct explanation of (A).

B) (A) is false, but (R) is true.

C) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

D) (A) is true, but (R) is false.

This MCQ is part of the UP PSC Previous Year Questions (PYQs) series, focusing on UPPSC Prelims 2024 (GS Paper I)