solve part c$.$

a$)$Our chosen currencies are the UK Pound, Japanese Yen, Brazilian Real, where UK Pound and Japanese Yen are both freely floating, and Brazilian Real is both fixed and freely floating. Exchange rate system fall into four categories, fixed, free, pegged, and managed floating. The Central Bank of a country controls the exchange rate system that is used in determining the value of a nation's currency. Fixed floating is when A system in which the countrys Central Bank intervenes in the currency market to fix $($peg$)$ the exchange rate in relation to another currency e$.$g US$$.$ When they want their currency to appreciate, they buy it on forex markets using their foreign reserves, thus increasing its demand. When they want their currency to depreciate, they sell it on forex markets, thus increasing its supply.Freely floating occurs when a government allows the exchange rate to be determined purely by market forces and there is no attempt to ask the central bank to influence the external value of the exchange rate. The UK has followed a free floating currency system since September $1992$ when the UK left the EUs exchange rate mechanism. In $1973$ Japanese monetary authorities decide to let the yen float freely against the dollar, and the yen appreciates as far as $263$ to the dollar. The Brazilian exchange rate has been both fixed and freely floating at different times. When it was established in $1994,$ the Real was fixed to the USD, though in $1999,$ the Real became freely floated to the USD, which is its current position.The pegged exchange rate system incorporates aspects of floating and fixed exchange rate systems. Smaller economies that are particularly susceptible to currency fluctuations will peg their currency to a single major currency or a basket of currencies. These currencies are chosen based on which country the smaller economy experiences a lot of trade activity with or on which currency the nations debt is denominated in$.$ For example, if a small nation that does a lot of trade with the USA decides to peg its currency to the US dollar, its currency will fluctuate in value in roughly the same manner as the USD. The practice eliminates high$-$magnitude fluctuations and makes the smaller economys currency a safer investment. Larger economies are less hesitant to set up trade deals with such currencies since their value will likely not fluctuate beyond reasonable levels.Managed floating Exchange Rate System is allowed to fluctuate within a specified band around a desired valuation. If it goes outside of this band then the Central Bank will intervene to bring it back within the band. When they want their currency to appreciate to back within the band, they buy it on forex markets using their foreign reserves, thus increasing its demand. When they want their currency to depreciate back into the band, they sell it on forex markets, thus increasing its supply.Advantages:Balanced Approach: It provides a balanced exchange rate mechanism, allowing flexibility while maintaining some level of control to ensure economic stability.Responsive to Economic Shocks: The managed float system can absorb and respond to economic disturbances, moderating economic cycles and mitigating potential impacts. Understanding the impacts of exchange rate changes can enhance comprehension of this balance.Disadvantages:Market Uncertainty: The unpredictable interventions can lead to market uncertainties, influencing trading decisions and market dynamics adversely.Resource Intensity: Effective interventions require substantial resources and reserves, posing potential strains and challenges for economic management.Real$-$world Example:Countries like India adopt a managed float system, strategically intervening to balance stability with growth and adapt to evolving economic landscapes

$.$b$)$ Percentage movement in the exchange ratesPrecentage Movement BRLJPYGBPMean$4\mathrm{.}2481112\mathrm{.}43771\mathrm{.}3077$Median$3\mathrm{.}9885110\mathrm{.}18001\mathrm{.}3061$Standard deviation$0\mathrm{.}89459\mathrm{.}13160\mathrm{.}0702$Maximum$5\mathrm{.}9366150\mathrm{.}38001\mathrm{.}4892$Minimum$3\mathrm{.}050499\mathrm{.}80001\mathrm{.}0654$Skewness $0\mathrm{.}26612\mathrm{.}1971-0\mathrm{.}0796$Kurtosis$-1\mathrm{.}50384\mathrm{.}69620\mathrm{.}0241$

c$)$Interpret your results and link your interpretation to the category of the exchange rate system when applicable. $??($Solve part c$)$