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Illustrate what are the different types of exchange rate

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Reference no: EM1337550

An Explanation of Exchange Rate

Hi, I need some assistance answering the following two questions:

1. What are the different types of exchange rate, their advantages and disadvantages?

2. During the middle years of this decade, the exchange rate of the U.S. dollar has declined against the currencies of its major trading partners. You would expect this to result in a corresponding increase in U.S. dollar denominated import prices from those trading partners. U.S. dollar import prices, however, often rise less than the increase in the currency value of the exporter. Why?

 

Reference no: EM1337550

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