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What are Merits and demerits of …

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What are Merits and demerits of fixed exchange rate system?

Posted by Priya Choudhary 5 years, 5 months ago

CBSE > Class 12 > Economics

2 answers

Keshav Girdhar 5 years, 5 months ago

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Keshav Girdhar 5 years, 5 months ago

Merits:- 1) Exchange rate stability 2) Prevents capital outflow 3)Prevents speculation in foreign exchange market 4)Promotes economic integration of the world Demerits:- 1)Unstability of foreign exchange 2) Scarcity of gold

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