A currency system in which exchange rates are determined in free markets is called a

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Quizplus · Accepted Answer

A flexible exchange rate system is one in which exchange rates are determined by the forces of supply and demand in the open market, without government intervention. A fixed exchange rate system involves governments or central banks taking action to maintain a specific exchange rate. The gold standard is a monetary system where the value of a country's currency is directly tied to gold. Therefore, only choice C correctly matches the definition.

A Currency System in Which Exchange Rates Are Determined in Free