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vredina [299]
3 years ago
5

Describe the purposes of a fixed currency regime

Social Studies
2 answers:
agasfer [191]3 years ago
7 0

Answer:

A fixed exchange rate is a regime applied by a government or central bank ties the country's currency official exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band

Y_Kistochka [10]3 years ago
4 0

Answer:

A fixed exchange rate is a regime applied by a government or central bank ties the country's currency official exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.

Explanation:

In 2018, according to BBC News, Iran set a fixed exchange rate of 42,000 rials to the dollar, after losing 8% against the dollar in a single day. The government decided to remove the discrepancy between the rate traders used—60,000 rials—and the official rate, which at the time was 37,000.

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When the federal reserve raises interest rates investment spending in the US will be <u>decreased</u>.

<h3>What is Federal Reserve?</h3>
  • The United States of America's central banking system is the Federal Reserve.
  • Following a string of financial panics that prompted the need for centralized supervision of the monetary system in order to prevent financial crises, it was established on December 23, 1913, the day before Christmas Eve, with the passage of the Federal Reserve Act.
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To learn more about Federal Reserve with the given link

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