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Floating Exchange Rate
The advantages of floating exchange rates are: Flexibility and automatic adjustment, Flexibility in determining interest rates, Greater insulation from other countriesâ?? economic problems, Lower foreign exchange reserves.
floating
Fiscal and monetary policies under managed floating exchange rate regimes?
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
Floating Exchange Rate
The advantages of floating exchange rates are: Flexibility and automatic adjustment, Flexibility in determining interest rates, Greater insulation from other countriesâ?? economic problems, Lower foreign exchange reserves.
floating
In a floating exchange rate system, the rates keep on changing according to the economic conditions. The rates of the currencies are never fixed.
Fiscal and monetary policies under managed floating exchange rate regimes?
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
it is high and its is an exchange
Pegged currency ^For me on apex 2022 :)
fixed rate
Automatic adjustment: Flexible exchange rates allow currencies to fluctuate based on market forces, enabling automatic adjustment to changes in supply and demand without the need for government intervention. Insulation from external shocks: Countries with flexible exchange rates are better able to insulate themselves from external shocks, such as changes in global economic conditions or commodity prices, as their currency can depreciate or appreciate to rebalance the economy. Independent monetary policy: A flexible exchange rate regime gives countries greater freedom in conducting their own monetary policy, as they are not constrained by the need to maintain a fixed exchange rate. Overall, a flexible exchange rate regime provides countries with the ability to adapt to changing economic conditions, maintain independence in their policy choices, and enhance economic resilience.
The exchange rate for that currency changes depending on the operations of the free market
When the dollar is under a flexible exchange rate regime