Explain the distinction between the flexible exchange rate and the managed floating exchange rate.
Dear Student,
fixed exchange rate is a rate which is set by the authorities on the basis of foreign exchange. By contrast, a floating exchange rate is the rate that is determined by the foreign exchange market depending on the supply and the demand of foreign exchange.
Regards
fixed exchange rate is a rate which is set by the authorities on the basis of foreign exchange. By contrast, a floating exchange rate is the rate that is determined by the foreign exchange market depending on the supply and the demand of foreign exchange.
Regards