Question: Question 4 6 points Many countries allow their exchange rates to float freely, while others (especially the small, emerging market countries) choose to fix their

Question 4 6 points Many countries allow their exchange rates to float freely, while others (especially the small, emerging market countries) choose to fix their exchange rates. Importantly, fixing a country's exchange rate has both costs and benefits. Outline and evaluate the advantages and disadvantages of having the UAE Dirham pegged to the US dollar. a. Discuss the two BENEFITS of adopting a fixed exchange rate policy. (2 points) b. Explain the two RISKS associated with adopting a fixed exchange rate policy. (2 points) Apart from the UAE, provide two examples of other countries that adopt a fixed exchange rate policy. It is important that you mention the name(s) of the currencies they are pegged to (2 points)

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