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Can international business operate more easily in a fixed exchange rate system or in a flexible exchange-rate syatem?
An international business will operate more easily in a fixed exchange rate system. Knowing what the equivalency of goods will allow for predetermined forecasting, however, a fixed rate decreases the opportunity for profits.
Briefly explain Advantages and disadvantages a flexible exchange-rate system?
define exchange and whts its advantages and disadvantages
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?
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.
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 does the balance of payments impact a flexible exchange rate?
It allows you to make your head bigger
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 is crawling peg in exchange rate system?
Crawling peg is a compromise between fixed & flexible exchange rate.
Can international business operate more easily in a fixed exchange rate system or in a flexible exchange-rate syatem?
An international business will operate more easily in a fixed exchange rate system. Knowing what the equivalency of goods will allow for predetermined forecasting, however, a fixed rate decreases the opportunity for profits.
What is the floating dollar?
When the dollar is under a flexible exchange rate regime
Briefly explain Advantages and disadvantages a flexible exchange-rate system?
define exchange and whts its advantages and disadvantages
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?
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.
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 does the balance of payments impact a flexible exchange rate?
It allows you to make your head bigger
What are the advantages and disadvantages of bill of exchange?
bill exchange is at an advantage of getting items by exchanging at a fair rate
What is a hybrid exchange rate?
It is a combination of fixed and flexible exchange rate, thsi system hanges par values of currency by small amount at frequent specified intervals
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 :)
What exchange rate system allows for fluctuations in currency values on a day-to-day basis?
A flexible exchange rate system allows for fluctuations in currency values on a day-to-day basis. Another kind of system would be a fixed exchange rate system.
