Sample Essay on Fixed Exchange Rate

Fixed Exchange Rate Fixed exchange rate is at timed known as pegged exchange rate and it’s a kind of regime where the value of the currency is fixed against the currency of another country to another value measure like gold. This kind of currency is used for purposes of stabilizing the value of one currency

Factors Affecting Foreign Exchange Rate Foreign exchange rate is always dynamic and it affects every sector of life. The economic health of a country is influenced by its current exchange rate. Consequently, it is important to understand some of the factors that affect foreign exchange rate. Interest rates When the interest rate of a country

Equilibrium Exchange Rate Equilibrium exchange rate refers the rate where currency supply meets demand of that same currency. Since foreign exchange rate is affected by several factors, equilibrium exchange rate is also influenced by factors of demand and supply. Therefore, equilibrium is achieved when the demand of a currency is equal to supply. Consequently, this

Pros and Cons of a Pegged Exchange Rate A pegged exchange rate, also known as fixed exchange rate refers to an exchange rate whereby the central bank or the government pins its official exchange rate to the currency of another country (s). Sometimes, the official currency exchange rate can also be tied to the price

Effects of Fixed Exchange Rates on Monetary Policy Many researchers have been busy conducting studies on the impacts that fixed exchange rates can have on monetary policy. The studies are still on-going; however, there are a few revelations that have been made on how pegged exchange rates can impact monetary policy. One thing to be

New Product Adoption Process Model How does a company introduce a new product in the market? How will consumers adopt the product? These are important questions for marketers whenever introducing a new product. Essentially, they need to identify classes, in which their adopters fall. This adoption process is also called the Diffusion of Innovation. It