Economy, asked by sumanpattanayak1970, 1 year ago

What are the determinants of flexible exchange rate?

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Answered by riyakumari7808p7b7ds

0

Aside from factors such as interestrates and inflation, the exchange rateis one of the most importantdeterminants of a country's relative level of economic health. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world.Mar 1, 2018

Answered by Talentedgirl1

1

Answer:

8 Key Factors that Affect Foreign Exchange Rates

Inflation Rates. Changes in market inflation cause changes in currency exchange rates. ...

Interest Rates. Changes in interest rate affect currency value and dollar exchange rate. ...

Country's Current Account / Balance of Payments. ...

Government Debt. ...

Terms of Trade. ...

Political Stability & Performance. ...

Recession. ...

Speculation.

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