| Which of the following are the components of impossible trinity? |
| 1. Free capital flow |
| 2. Flexible Exchange Rate |
| 3. Low inflation |
| 4. High Growth |
| 5. Sovereign Monetary Policy |
| Select the correct answer using the codes given below. |
A) 1 and 2
B) 3 and 4
C) 1, 2 and 5
D) 3, 4 and 5
Correct Answer: C
Solution :
[c] Free capital flow, Flexible Exchange Rate, Sovereign Monetary Policy are considered as the impossible trinity.
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