For Grade 12SL Economics
The Exchange Rate
It represents the rate at which one currency buys other currency and shows the power with which it can purchase goods and services around the world. Important to note that their are two most popular exchange rate systems one is freely floating exchange rate (capitalist economies) and the second is fixed exchange rate system (command economies). Its not an hidden fact that counties around the world try to influence the exchange rate in order to stimulate the exports and to depress the imports. They usually follow various ways to rein in uncontrolled exchange rates. In modern day countries have adopted a middle path known a managed floating exchange rate system. Its important to the student of economics to learn these system of exchange rate adopted around the world to improve their knowledge of international trade.
Below is given the links of two articles about the exchange rate.
Here is a question to practice.
Analyse and Evaluate the importance of freely floating exchange rate in the all round development of a country.
Post your essay here by clicking on the comment.
[you can select any other country for your reference, give link to any specific article if you are using, careful I will use turnitin for honesty]
Word count 500 words, Due date for submission Sunday, January 11th,2015.
Ref Article 1. Exchange rates, headaches [The Economist]
Ref. Article 2: Will Venezuela's New Floating Exchange Rate Curb Inflation?
Reference 3: Exchange Rate
