What is the difference between Fixed Exchange rates and Floating Exchange rates?
CBSE Class 10
CBSE Class 10 Social
2018-03-06 14:07:47 UTC
When exchange rates are fixed and governments intervene to prevent movements in them, it is
called fixed exchange rates.
While, when rates fluctuate depending on demand and supply of currencies in foreign exchange markets in principle without interference by governments, it is called floating or flexible exchange rates.