1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IgorC [24]
2 years ago
15

In a few sentences, explain the difference between a fixed exchange rate and a flexible exchange rate. What are the basic advant

ages and disadvantages of each?
Social Studies
1 answer:
Kobotan [32]2 years ago
5 0

Answer:

Explanation

A fixed exchange rate happens when a country ties the value of its currency to some other common commodity or to the currency of another  i.e  an exchange rate where the currency of one country is linked to the currency of another country or a commonly traded commodity like gold or oil.  It provides country stability and the rate are predominantly determined by the government.

while Flexible exchange rate which is also known as floating exchange rate  serves to adjust the balance of trade. In this exchange, the currency price of a nation is set by the forex market based on supply and demand relative to other currencies. Unlike Fixed exchange, where exchange rates are determined by government, exchange rate is solely determined by the global demand and supply of currencies in Flexible exchange.

advantages of fixed exchange;

1.  it provides country stability as the investors always know the  worth of the currencies.

2. it prevent inflation from occurring in a country.

3.  It promotes currency stability.

disadvantages:

1. It can be very expensive to maintain as a country must have enough foreign  exchange reserves to manage its currency rate.

2. it require higher interest rates.

advantages of flexible exchange:

1. it promotes stability in the balance of payment

2. promotes the domestic economy from shocks produced by disturbances

disadvantages:

1.  unstable conditions

2.  volatile in nature

You might be interested in
Compare maps of the world in ancient times with current political maps. Use the maps below to answer the following question.
koban [17]
I think it would be C
8 0
3 years ago
Regarding sensitive and complicated issues, which of the following is correct? Group of answer choices a) Use self-administered
ruslelena [56]

Answer:

b)

Explanation:

Sensitive issues refer to topics which people tend to feel uncomfortable talking about (Like harassment, addictions, violence)

Many studies on this topic have shown that when people are in front of other person who's interviewing them they might hide some aspects of themselves to create a better impression on the interviewer, therefore, the information acquired this way is not 100% right.

Regarding <u>sensitive issues, it is even more difficult for people to talk about them specially when it comes to an stranger</u> (like a researcher). Thus, it is not recommended to address sensitive issues in interviews but rather by <u>self-administered questionnaires in which the person doesn't have to interact with another person.</u>

<u />

When it comes to complicated issues, a questionnaire is not recommended since it could leave the researcher without enough information, and since it's <u>a complicated issue, the researcher might want to be there to clarify people's answers.</u> Therefore, <u>for complicated issues, it is better to use interviews.</u>

Thus, the correct answer is b) Use self-administered questionnaires for sensitive issues and interviews for complicated issues

5 0
3 years ago
00
Airida [17]
The answer is D




Entrepreneurship is defined as, “The activity of setting up a business or businesses. Taking on financial risk in hope for product.”





When Margaret opens a store is sell her new invention, she is taking entrepreneurial action. Taking the financial risk to produce a product and opening a store, a business, in hopes of making profit.
4 0
3 years ago
Read 2 more answers
At which position would a cat on Earth have least amount of pull due to gravity? A-in a plane flying above Earth b-in a cat bed
damaskus [11]

Explanation:

A-in a plane flying above Earth

4 0
3 years ago
As the colonies grew the need for enslaved africans grew? True or false?
olganol [36]

Answer:

True bc they needed more people to do the work however when the industrial era started thats when the need for enslaved africans dropped.

8 0
3 years ago
Other questions:
  • President Bush proposed No Child Left Behind in response to the _____ movement.
    10·2 answers
  • The freudian stage during which girls must resolve the electra complex is the ______ stage
    15·1 answer
  • Most babies speak their first recognizable words at:
    6·1 answer
  • What is the land east of roanoke island
    15·1 answer
  • Azdah's teenage son fails his mathematics exam due to lack of studying. She immediately assumes that it is her fault. Azdah is e
    7·1 answer
  • How do southerly winds along the coast of peru cause upwelling there?
    12·1 answer
  • The energy conversions involved in formation of cyclones
    6·1 answer
  • If you are gambling in las vegas, your motivation to avoid losing is likely _____ your motivation to win.
    9·1 answer
  • Is telling yourself that you are unique enough or do you need to do Something else to prove that you are special? Please explain
    7·1 answer
  • Briefly explain the dynamic characteristics of the communication process. ​
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!