A country is said to have a exchange rate when the government keeps the exchange

Question

A country is said to have a exchange rate when the government keeps the exchange rate against other currencies at or near a particular target, while a country is said to have a exchange rate when the rate is allowed to move with the market. fixed Floating flat stable static fixed floating flexible free market variable Foreign exchange controls are policies that limit the nights of governments to set interest rates of central banks to hold foreign currency of individuals to buy foreign currency of governments to fix exchange rates Government can buy and sell currency internationally through which directly impact the quantity of within the country capital market intervention foreign exchange controls open market initiatives exchange market intervention domestic savings foreign investment foreign exchange reserves foreign owned assests

Explanation / Answer

1) floating ; free market

2) of individuals to buy foreign currency

3)exchange market intervention ; foreign exchange reserves

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