What is free or flexible exchange rate?
I'm wondering about the concept of a free or flexible exchange rate. Could someone explain what it means and how it works in the global financial system?
What is free exchange rate also known as?
I don't understand this question. Could you please assist me in answering it?
What is the difference between a fixed and free exchange rate?
Can you explain the key distinctions between a fixed and free exchange rate system? How do they differ in terms of their functioning, the role of central banks, and the level of market influence? Which one offers more stability, and which one allows for greater flexibility in response to economic changes? Additionally, what are the potential advantages and disadvantages of each system?