ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The opposite of a floating exchange rate is a fixed exchange rate, where a country links its currency to that of another country or to another standard, such as gold.

Detailed explanation-2: -A reciprocal exchange rate would be the inverse of the exchange rate. You would divide 1 by the current exchange rate of the two currencies for the inverse relationship.

Detailed explanation-3: -Is the U.S. Dollar a Fixed or Floating Exchange Rate? The U.S. dollar is a floating currency, much like most of the major currencies in the world. The value of the dollar floats with its demand in the global currency markets. At one point, the U.S. dollar was a fixed currency with its peg to the value of gold.

Detailed explanation-4: -A fixed exchange rate – also known as a pegged exchange rate – is a system of currency exchange in which the value of one currency is tied to another.

Detailed explanation-5: -A loan can have a fixed interest rate or a floating interest rate. If the loan has a fixed interest rate, the interest rate remains constant for the duration of the loan. If the loan has a floating interest rate, also called a variable interest rate, then the interest rate fluctuates over the duration of the loan.