Whats the pegged exchange rate system advantages, Financial Management

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Whats the pegged exchange rate system advantages

1. Briefly explain one situation where you think zoning is proper and beneficial and one example where you feel it is not.

2. Suppose that the one-year interest rate is 3.5 percent in the United States and 5.0 percent in Germany, and the one-year forward exchange rate is $1.16/€. What must the spot exchange rate be?

3. What’s the pegged exchange rate system? Advantages? Limitations?

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