1
Question
Short Answer Type Questions:
Distinguish between fixed and flexible exchange rate.
Distinguish between fixed and flexible exchange rate.
Open in App
Solution
Fixed rate of exchange refers to the rate of exchange as fixed by the
government. Historically, it has two variants; Gold standard system of
exchange rate and Bretton woods system of exchange rate.Flexible rate of exchange is the rate which is determined by the
supply-demand forces in the foreign exchange market. It is also called
'free exchange rate' as it is determined by the free play of supply and
demand forces in the international money market.
Fixed rate of exchange refers to the rate of exchange as fixed by the
government. Historically, it has two variants; Gold standard system of
exchange rate and Bretton woods system of exchange rate.
Flexible rate of exchange is the rate which is determined by the
supply-demand forces in the foreign exchange market. It is also called
'free exchange rate' as it is determined by the free play of supply and
demand forces in the international money market.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
