Fixed-point arithmetic is a method of representing real numbers in a way that maintains a fixed number of digits before and after the decimal point. This approach is commonly used in computer systems where resources are limited, as it allows for efficient calculations without the complexity of floating-point arithmetic. In fixed-point representation, numbers are scaled by a predetermined factor, making it easier to perform arithmetic operations like addition and subtraction. This technique is particularly useful in applications such as digital signal processing and embedded systems, where speed and memory efficiency are crucial. By using fixed-point arithmetic, developers can achieve consistent performance while avoiding the pitfalls of rounding errors that can occur with floating-point numbers.