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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2054 |
Essay's paper body
One of the benefits of this medium of exchange is that it created a fixed exchange rate system. This is regarded in positive light by traders as they able to plan with the knowledge that the rate of exchange is not likely to vary. A fixed exchange rate system is one in which the price in any given currency does not change relative to another currency...
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A fixed exchange rate system is one in which the price in any given currency does not change relative to another currency.
- This is regarded in a positive light since it offers more stability, even stabilizing speculation - international traders are therefore able to plan with some degree of certainty knowing that the rate of exchange is not likely to vary It also imposes a price discipline on the nations...
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