Fixed exchange rates are determined by the:

Question

Quizplus · Accepted Answer

Fixed exchange rates are determined by the policies of the domestic government, which typically involves setting a specific value of their currency in relation to another currency or a basket of currencies. This can be achieved through various measures such as buying or selling domestic currency in the foreign exchange market or adjusting interest rates. The government is responsible for maintaining the fixed exchange rate and may need to intervene to keep the rate stable.

Fixed Exchange Rates Are Determined by The