What Is the Main Cost of Maintaining a Fixed Exchange

question 46

Essay

What is the main cost of maintaining a fixed exchange rate? Provide two reasons,then,why countries fix their exchange rates.

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Definitions:

Nearest Cent

Rounding a monetary amount to the closest cent, typically as part of currency calculations to ensure practical transactions.

Decimal Places

The number of digits to the right of a decimal point in a number.

Exponential Rate

A growth rate characteristic of functions of the form y = a * e^(bx), where e is the base of the natural logarithm, approximately equal to 2.71828.

Decimal Places

Decimal places refer to the number of digits to the right of the decimal point in a number. For example, in the number 3.142, there are three decimal places.