Asked by
Jania Broadnax
on Dec 02, 2024
Verified
In a fixed exchange rate system, governments are responsible for holding their exchange rate nearly constant.
Fixed Exchange Rate System
A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold.
Exchange Rate
The value of one currency for the purpose of conversion to another.
Governments
The governing bodies of a nation, state, or community, responsible for creating and enforcing laws and policies.
- Comprehend the operations and consequences of flexible versus pegged currency exchange mechanisms.
Verified Answer
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Learning Objectives
- Comprehend the operations and consequences of flexible versus pegged currency exchange mechanisms.