Economics A-Level
Fixed exchange rate systems
What Fixed exchange rate systems means in Economics A-Level, as defined for AQA.
Definition of Fixed exchange rate systems
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Reference: AQA
Systems that provide certainty for international trade and investment, reducing currency risk for firms, but require large foreign currency reserves and force the abandonment of an independent monetary policy.
Topics that use Fixed exchange rate systems
- Exchange rate systems (AQA A-Level)
Related terms
- Appreciation
- Asymmetric economic shock
- Balance of payments
- Currency union
- Depreciation
- Floating exchange rate systems
- Freely floating exchange rate system
- Hot money flows
Using Fixed exchange rate systems in the exam
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