Understanding Foreign Exchange Rates: Types, Systems, and

MILESTONE – AN INSTITUTE OF BRILLIANCE Chapter – 10 (Foreign Exchange Rate) What do you mean by foreign exchange rate?

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Name two types of exchange rate. Two types of foreign exchange rate are:

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Explain the concept of Fixed exchange rate system.

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b) Bretton woods system of exchange rate a)Gold standard system of exchange rate:

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b) Bretton wood system of exchange rate:

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Describe the merits and demerits of fixed exchange rate system.

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1.Market stability and mobility of capital:

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