What are fixed and flexible exchange rates?

1.	What are fixed and flexible exchange rates?
Answer» Fixed exchange rate: is the rate which is officially declared in any other currency by the government or central bank. It is fixed for a particular period. Like 1 $ = 55 Rs. Flexible exchange rate: is the exchange rate determined by the forces of demand and supply of foreign exchange in the market it is influenced by the market forces.

Answer»

Fixed exchange rate: is the rate which is officially declared in any other currency by the government or central bank. It is fixed for a particular period. Like 1 $ = 55 Rs.

Flexible exchange rate: is the exchange rate determined by the forces of demand and supply of foreign exchange in the market it is influenced by the market forces.

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What are fixed and flexible exchange rates?

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