Fixed exchange rate system, Accounting Basics

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Fixed exchange rate system

Assignment:

Q1. Under the fixed exchange rate system, what was the currency against which all other currency values were defined? Why?

Q2. Exchange rates fluctuate under both the fixed exchange rate and floating exchange rate systems. What, then, is the difference between the two systems?

Provide complete and step by step solution for the question and show calculations and use formulas.

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Accounting Basics: Fixed exchange rate system

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