Floating exchange rates can also be referred to as ________ exchange rates.

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Floating exchange rates are sometimes called flexible exchange rates because they are determined by market forces (supply and demand) and can fluctuate freely. Fixed exchange rates, on the other hand, are determined by government policy and are held constant by official intervention in the foreign exchange market. Real exchange rates reflect the relative prices of goods and services between two countries, while pegged exchange rates are fixed to another currency or asset. Specialized exchange rates are not a commonly used term.

Floating Exchange Rates Can Also Be Referred to as ________