Today, fixed exchange rates are used primarily by small, developing countries that tie their currencies to a key currency such as the U.S.dollar.

Question

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Fixed exchange rates are often used by smaller, developing countries to stabilize their currency by tying it to a major currency like the U.S. dollar, which can help reduce inflation and encourage foreign investment by providing more predictability in exchange rates.

Today, Fixed Exchange Rates Are Used Primarily by Small, Developing