Identify the Difference Between Fixed and Floating Exchange Rates

question 25

Essay

Identify the difference between fixed and floating exchange rates.Provide an example of a situation where the fixed and floating exchange rates were used.

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Definitions:

Unenforceable Contracts

Agreements that, due to legal deficiencies, cannot be upheld or enforced by the courts.

Void Contracts

Agreements that are illegal or against public policy and therefore unenforceable by law.

Bilateral Contract

A contract in which the promise of one of the parties forms the consideration for the promise of the other.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by the other party.