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A dirty floating exchange rate allows a country to intervene in the foreign exchange market to stabilize its currency, providing greater control over economic conditions. This flexibility can help mitigate volatility and protect against speculative attacks. Additionally, it enables governments to respond to economic shocks or changes in trade balances more effectively, supporting overall economic stability. It can also help maintain competitiveness by preventing excessive appreciation or depreciation of the currency.
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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
What are the advantages of a fixed exchange rate system compared to a floating exchange rate system?
In a fixed exchange rate system, the advantages include stability in international trade and investment, reduced uncertainty for businesses, and lower inflation rates. This system can also help countries maintain control over their currency value and prevent sudden fluctuations.
Fiscal and monetary policies under managed floating exchange rate regime?
Fiscal and monetary policies under managed floating exchange rate regimes?
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
What are the advantages of a fixed exchange rate system compared to a floating exchange rate system?
In a fixed exchange rate system, the advantages include stability in international trade and investment, reduced uncertainty for businesses, and lower inflation rates. This system can also help countries maintain control over their currency value and prevent sudden fluctuations.
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 the meaning of dirty floating?
Dirty floating is a system where a currency's exchange rate is allowed to fluctuate freely based on market forces, but central banks also intervene occasionally to adjust the currency's value. This intervention can occur to stabilize the currency or to achieve other economic objectives.
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
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
