Exchanges collect transaction fees from market participants and companies in exchange for providing such services. They also offer various products and services used for trading and related activities. The New York Stock Exchange (NYSE) is one of the world's largest stock exchanges.
Does the choice of exchange rate regime have long-run effects?
- If the choice of exchange rate regime does not have these long-runconsequences, then in terms of macroeconomic effects, all that the choice of exchange rate regime does is shift the distribution of short-run fluctuations from one market to another. This is the second type of effect noted above.
Should the possibility of exchange rate change be removed?
- It is argued that removing the possibility of exchange rate change will remove an important nontarifF barrier, because the possibility of ex- change rate changes will deter some traders and investors altogether, whereas others will have to pay a substantial cost to fix the domes- tic value of their foreign currency receipts.
Does exchange rate flexibility promote international trade?
- TRADE -ANDTHE EXCHANGE RATE REGIME The claim that exchange rate flexibility ham- pers international trade in goods and in capital and thus depresses welfare amid perhaps growth is based on the existence of uncertainty.
Why did the EEC adopt fixed exchange rates?
- A se- cond motive for adopting fixed exchange rates has been the claim that they, and ultimately a single currency, are important to the EEC’s Sin- gle Market Progt-amme. 2 ‘I’he logic is that the
Exchanges collect transaction fees from market participants and companies in exchange for providing such services. They also offer various products and services used for trading and related activities.