Question
Floating rate system and Fixed rate system
Answer :
Word Count : 132
| Feature | Floating Rate System | Fixed Rate System |
|---|---|---|
| Definition | Exchange rate is determined by market forces (demand and supply) and can fluctuate continuously. | Exchange rate is pegged or fixed against another currency or a basket of currencies and does not change frequently. |
| Control by Central Bank | Limited control; central bank may intervene occasionally to stabilize the currency. | High control; central bank actively _________ __________ ____ ____ _____ __________ ___. ___ _____ _________ ___ __________ _______ _________ ________ _____ ___ _________. _______ __________ ___ _____ __________ ____ ____ _________ ____ _________ _______ _________. _____ _____ ____ __________ __________ ____. __________ ______ _____ __________ _______ ______ ____ _______ _______ ___ ___ _________. ________ __________ ______ ____ ___ _____ ____ _______. __________ _________ _______ ________ __________ ___. __________ ______ _________ _______ _______ _________ ___ ___. _______ ______ ___ ________ ______ _______ _______ __________ ____. IGNOU ACADEMY Your IGNOU journey, made easier.
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