23.1k views
1 vote
A fixed exchange rate is one that​ _______. A fixed exchange rate is achieved​ _______.

User Psycho Brm
by
4.4k points

1 Answer

2 votes

Answer: Filling the blanks, we get:

A fixed exchange rate is one that​ is set by a country's central bank. A fixed exchange rate is achieved​ by the intervention of the central bank in the area of foreign exchange.

Explanation: In foreign exchange we have two types of exchange rates, we have the flexible exchange and fixed exchange rate. The flexible exchange rate is an exchange rate controlled by the forces of demand and supply. While on the other hand a fixed exchange rate is an exchange rate set by a country's government by making deliberate payments to keep the exchange rate fixed.

User Ianckc
by
4.3k points