answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What are the advantages of dirty floating exchange rate?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Which exchange rate is following by India?

Floating Exchange Rate


What are the advantages of 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.


If the supply and demand for currency determines the exchange rates this is called?

floating


Features of floating exchange rate?

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 regime?

Fiscal and monetary policies under managed floating exchange rate regimes?


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 are the advantages of a high exchange rate?

it is high and its is an exchange


What is a currency whose value is determined by the supply and demand for the currency in the market?

Pegged currency ^For me on apex 2022 :)


Which is more conducive to international trade the fixed or the floating exchange rate?

fixed rate


List and explain advantages of flexible exchange rate regime?

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.


What best explains what happens to the exchange rate of a floating currency?

The exchange rate for that currency changes depending on the operations of the free market


What is the floating dollar?

When the dollar is under a flexible exchange rate regime