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How do fixed, floating and managed or dirty float exchange rates regimes differ?

How do fixed, floating and managed or dirty float exchange rates regimes differ?

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Answer #1

Fixed exchange rate means which remain fixed .it is nominal exchange rate which is set by monetary authority with respect to foreign currency.

Floated exchange rate is determined by demand and supply in foreign exchange market.it is fluctuated constantly.

Manage float or dirty float means which is used in current international financial environment .in current international financial market it fluctuate from day to day .central bank attempt to influence these exchange rates.

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