Question: what are the advantages and disadvantages of a fixed exchange rate?
Answer: (i) Elimination of Uncertainty and Risk: (ii) Speculation Deterred: (iii) Prevention of Depreciation of Currency: (iv) Adoption of Responsible Macroeconomic Policies: (v) Attraction of Foreign Investment: (vi) Anti-inflationary: (i) Speculation Encouraged: (ii) Adequacy of Foreign Exchange Reserves: