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What is the difference in how the exchange rate reflects the supply and demand for the currency between a flexible-exchange rate system and a fixed-rate exchange system?
EncofBizandFinance
Fixed Exhange-Rate System: currency system in which governments try to keep the values of their currencies constant against one another
Flexible Exchange- Rate System: allows the exchange rate to be determined by supply and demand. With a flexible exchange- rate system, exchange rates need not fall into any prespecified range.
Wiki User
∙ 12y ago
Wiki User
∙ 16y agoSuch statements cant be made. it depends on the economy. To maintain a fixed exchange rate a country is required to have good foreign exchange reserves so that every time currency moves away from the fixed rate the foreign exchange cab be sold or bought in market. Floating exchange rate is more real as it makes exchange rate according to the strength of the country. Like for India currency is appreciating because country is growing but is also makes exporters worse off but then it makes them make their goods more competitive in international markets.
Wiki User
∙ 13y agoflexible-exchange-rate system, the equilibrium exchange rate reflects the supply and demand for the currency. Under a fixed-exchange-rate system, a country's central bank intervenes by buying or selling its currency to keep its foreign-exchange rates
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Explain the difference between indirect and direct exchange rates?
The difference between indirect and direct exchange rates is that an indirect exchange rate is the number of foreign currency units that may be obtained for one local currency unit and a direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar).
Why does Japanese currency have a weak exchange rate?
The Japanese currency has a weak exchange when compared to the major external currencies due to the difference in their trade balance and poor internal economic factors
What best explains the difference between a fixed currency and a floating currency?
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
What is the difference between a floating and a pegged exchange rate?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
What is the currency and foreign exchange code of Bolivia?
The currency in Bolivia is Boliviano and the foreign exchange code of the currency is BOB.
Explain the difference between indirect and direct exchange rates?
The difference between indirect and direct exchange rates is that an indirect exchange rate is the number of foreign currency units that may be obtained for one local currency unit and a direct exchange rate is the number of local currency units needed to acquire one foreign currency unit. The direct exchange rate has the local currency units in the numerator (the U.S. dollar for the direct exchange rate for the U.S. dollar).
What is the difference between the stock market and the currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
Why does Japanese currency have a weak exchange rate?
The Japanese currency has a weak exchange when compared to the major external currencies due to the difference in their trade balance and poor internal economic factors
When do currency exchange happen?
When it happend huge difference between two country currencies..
What is difference between Convertible and non-convertible currency?
A non convertible currency is a money system that is not part of the FOREX exchange. It cannot be converted into other currency.
Where can l exchange Budapest currency for us currency?
You can exchange Budapest currency for US currency at most banks that exchange foreign currency. You can also make this exchange at places like currency kiosks at international airports.
What is the significance and difference in foreign currency exchange rates?
The differences in foreign currency exchange rates is also called a spread. The size of the spread determined by the liquidity of the pair, the amount of buyers and sellers.
What best explains the difference between a fixed currency and a floating currency?
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
What is the difference between a floating and a pegged exchange rate?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
How do you exchange tickets for robux?
You can exchange them at the Currency Exchange. Go to "Catalog" and then click "Trade Currency"
Difference between Spot Exchange Rate and Exchange rate?
An exchange rate, which is also called the foreign-foreign exchange rate, is the rate that currency will be exchanged for another currency and may have a forward contract. The spot exchange rate is the current exchange rate today with immediate delivery and it is also called benchmark rates and outright rates.
What exactly does a forex exchange mean?
I think 'forex exchange' comes from the term 'foreign currency exchange'. You can exchange your money from the currency of the country you are based in to a currency from another country.
