With a system of flexible, or floating, exchange rates, the rates at which nations' monies exchange are determined by:

Question

Quizplus · Accepted Answer

The forces of demand and supply determine the rates at which nations' monies exchange in a system of flexible, or floating, exchange rates. This means that the value of a currency relative to another fluctuates based on market conditions such as trade balances, interest rates, and economic indicators.

With a System of Flexible, or Floating, Exchange Rates, the Rates