In this article we will discuss about fixed or pegged and flexible or fluctuating exchange rate system. Fixed or Pegged Exchange Rate System: In the case of fixed or pegged exchange system, all the international transactions take place at the rate of exchange fixed by the monetary authority. The exchange rate is either fixed by the government through legislation or [...]
The rigidly fixed exchange rate policy and freely flexible exchange rate policy are at the two extremes. Either of the two extreme policies suffered from certain defects or problems. In practice, the different countries have attempted to adopt such exchange rate policies that tend to combine a certain degree of inflexibility with a reasonable degree of flexibility. Such policies are [...]
Here is an essay on ‘Currency Convertibility’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Currency Convertibility’ especially written for school and college students. A currency is said to be convertible in the true sense if it is accepted throughout the world in both types of transactions: (a) Transactions in current account, (b) Transactions [...]