Question

What is
fixed exchange rate?​

Answer 1

Answer:

A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold. The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.

Explanation:

Answer 2

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Fixed rate of exchange refers to the rate of exchange as fixed by the government. Historically, it has two variants; Gold standard system of exchange rate and Bretton woods system of exchange rate.