Define why it is hard to maintain a fixed exchange rate, Financial Management

Assignment Help:

Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so.

Answer: one time capital markets are integrated internationally; vast amounts of money may flow in and out of a country in a short time period. This will make it very hard for the country to maintain a fixed exchange rate.


Related Discussions:- Define why it is hard to maintain a fixed exchange rate

Effect on exchange rates, Effect on Exchange Rates As we know, one of t...

Effect on Exchange Rates As we know, one of the most vital determinants of changes in relative exchange rates is the relative inflation rate. Assuming a free and open market, i

Semi-strong-form of efficiency, Semi-Strong form level of Efficiency This...

Semi-Strong form level of Efficiency This level states that share prices reflects all available public information. (past and present information). If the market has achieved thi

Project, Starbucks future cash flows

Starbucks future cash flows

Working capital as a percentage of total assets, Q. Working Capital as a Pe...

Q. Working Capital as a Percentage of Total Assets? This approach of estimation of working capital requirement is based on the fact that the total assets of the firm arc consis

Calculate the new interest rate and excel function pv, I want to see the so...

I want to see the solution that was provided in Feb 2013 for Calculate the new interest rate and excel function pv, Financial Accounting

Call risk, We have seen earlier that there are callable bonds. This i...

We have seen earlier that there are callable bonds. This is a valuable feature for the issuers who consider that their stock is undervalued enough so that selling

Clemson software, Clemson Software is considering a latest project whose da...

Clemson Software is considering a latest project whose data are given below.  The needed equipment has a 3-year tax life, after which it will be worthless,and it will be depreciate

Microsoft''s Partenership Strategies, I have a presentation to give on ''Ne...

I have a presentation to give on ''New ways'' Microsoft can improve its ''Partnership Strategies''. Can some one please give some good links or insights into the same.

State the major decision of financial management, State the major decision ...

State the major decision of financial management The major decision of financial management is the decision relating to dividend policy. The dividend must be analysed in relat

Final Project AFM, Ask questiona) Maju Construction (MCo) Sdn. Bhd. is bidd...

Ask questiona) Maju Construction (MCo) Sdn. Bhd. is bidding on a contract to build four tiny camping house (TCH) a year for the next three years for Sintokian campsite. Each TCH wi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd