Under a floating exchange rate system, the value of one currency relative to another is determined by the forces of supply and demand.

Name: Under a floating exchange rate system, the value of one currency relative to another is determined by the forces of supply and demand.
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Under a floating exchange rate system, the exchange rate is not fixed by the government or central bank, but rather fluctuates based on market forces of supply and demand for each currency.

Under a Floating Exchange Rate System, the Value of One