Question

2.4 Technical Float. Speaking very specifically- technically, what does a floating rate of exchange mean? What is the role government?

Answer 1

tho s defand on The Floating demand is the floating Exchango ralp a currency s defands on the - demand Floating for Exchange rate good services Exchange production by the the country floating depand on & rater floating Bxchange Exchange the Interest rates Exchange date a ER BRE - - + Cuentity Gunting increasing demand. Den in the This rate of mograph shown the market the demand sate floating the Exchange for delbr. increase thon increase. the when Exchange

dovt sole in floating Exchango u The in govt. main the Exchange solo rate is intervention in floating Exchange rate. in the floating Exchange rate floadny Exchange rate managed Exchange the Rate. government the floating Exchange rate under the government main pole sa il monetary Policy cause GNP increase and the depreciation domestic Currencies . floating Exchange rate the short pun The govt buy or sell the foreign exchang e as use and needed. Because the govt. manage the exchange rate- e in monetary Poricles to so the the exchange rate. manage the

HON floating Exchange Rate's Rato A floating government determined exchange allow Rate means Exchange which rate - the to market Room of frees ... to In the A pate no any atte influence is called loating exchange Exchange e in the value of force and floating currency that rate that rate. Exchange rate The is define by market is not intervention by government. Appreciation occurs. when the currency relative to other - is currency gain value Exchange rate ER - - duontity of dollars market for dollars.