Fixed exchange rate

Floating exchange rate

Managed float

Pegged exchange rate

To stabilize the value of the domestic currency

To promote economic growth

To reduce inflation

To increase exports

To stabilize the value of the domestic currency

To promote economic growth

To reduce inflation

To increase exports

To stabilize the value of the domestic currency

To promote economic growth

To reduce inflation

To increase exports

It stabilizes the value of the domestic currency

It reduces uncertainty for businesses and investors

It makes it easier to compare prices across countries

All of the above

It can lead to a loss of monetary independence

It can make it difficult to adjust to economic shocks

It can lead to a buildup of foreign exchange reserves

All of the above

It allows the exchange rate to adjust to market forces

It gives the central bank more flexibility to conduct monetary policy

It helps to promote economic growth

All of the above

It can lead to exchange rate volatility

It can make it difficult for businesses to plan for the future

It can lead to a loss of competitiveness

All of the above

In a fixed exchange rate, the central bank intervenes in the foreign exchange market to keep the exchange rate at a predetermined level, while in a floating exchange rate, the exchange rate is determined by market forces.

In a fixed exchange rate, the exchange rate is determined by market forces, while in a floating exchange rate, the central bank intervenes in the foreign exchange market to keep the exchange rate at a predetermined level.

In a fixed exchange rate, the exchange rate is determined by the central bank, while in a floating exchange rate, the exchange rate is determined by market forces.

In a fixed exchange rate, the exchange rate is determined by the government, while in a floating exchange rate, the exchange rate is determined by market forces.

In a managed float, the central bank intervenes in the foreign exchange market to smooth out exchange rate fluctuations, while in a floating exchange rate, the exchange rate is determined entirely by market forces.

In a managed float, the exchange rate is determined entirely by market forces, while in a floating exchange rate, the central bank intervenes in the foreign exchange market to smooth out exchange rate fluctuations.

In a managed float, the exchange rate is determined by the central bank, while in a floating exchange rate, the exchange rate is determined by market forces.

In a managed float, the exchange rate is determined by the government, while in a floating exchange rate, the exchange rate is determined by market forces.

China

United States

Japan

India

China

United States

Japan

India

China

United States

Japan

India

China

United States

Japan

India