(2) Why do we need foreign exchange? Write a brief note on the differences between fixed and flexible exchange rate systems by describing the concepts of appreciation, depreciation, revaluation and devaluation of currency. Give some reasons in a short note that why the country goes for fixed exchange rate system?

(2) Why do we need foreign exchange? Write a brief note on the differences between fixed and flexible exchange rate systems by describing the concepts of appreciation, depreciation, revaluation and devaluation of currency. Give some reasons in a short note that why the country goes for fixed exchange rate system?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(2)
Why do we need foreign
exchange? Write a brief note on the
differences between fixed and flexible
exchange rate systems by describing
the concepts of appreciation,
depreciation, revaluation and
devaluation of currency. Give some
reasons in a short note that why the
country goes for fixed exchange rate
system?

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