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In a floating exchange rate system, the rates keep on changing according to the economic conditions. The rates of the currencies are never fixed.

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11y ago

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Which exchange rate is following by India?

Floating Exchange Rate


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

floating


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 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


What is the floating dollar?

When the dollar is under a flexible exchange rate regime


Discuss whether it is better for a country with a floating exchange rate to face an appreciation or depreciation of its currency?

The great atraction of a floating exchange rate is that in theory it provides a kind of automatic mechanism for keeping the balance of payment in equilibrium.


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

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


What are the effect of floating exchange rate if the government increase tariff?

increase in importation of the products


A floating exchange rate describes an exchange rate that?

A floating exchange rate describes an exchange rate that is determined by the market forces of supply and demand without direct government or central bank intervention. In this system, currency values fluctuate freely based on economic conditions, interest rates, inflation, and other factors. This allows for greater flexibility in responding to economic changes but can lead to increased volatility in currency values.