Question: do you agree or disagree, why or why not? Fixed exchange rate is the rate which is officially fixed by the government or monetary authority

do you agree or disagree, why or why not?

Fixed exchange rateis the rate which is officially fixed by the government or monetary authority and not determined by market forces. Only a very small deviation from this fixed value is possible.

Flexible exchange rateis the exchange rate in which rate of exchange is determined by forces of demand and supply of foreign exchange market.

Partially flexible exchange rate is that in this case the government can intervene in the foreign exchange market under extreme conditions and influence the exchange rates by buying and selling currencies as the case may be.

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