Question:
What are the Disadvantages of a Fixed Exchange Rate?
Author: eric_galvaoAnswer:
-If the Fixed Exchange Rate is no longer suitable, they may start Speculating, Sell the Currency, and make the situation Less Suitable -Nation loses Control of Interest Rates, as they need to be Used to keep the Rate at the Desired Level -Can be Difficult and Expensive to Maintain
0 / 5 Â (0 ratings)
1 answer(s) in total