The world's four major trading currencies, the Japanese yen, the U.S. dollar, the British pound, and the European Union's euro, are all free to float against each other. What is this an example of?

Question

Quizplus · Accepted Answer

When the foreign exchange market determines the relative value of a currency, the country is adhering to a floating exchange rate system. The world's four major trading currencies, the Japanese yen, the U.S. dollar, the British pound, and the European Union's euro, are all free to float against each other. Consequently, their exchange rates are determined by market forces and fluctuate against each other daily.

The World's Four Major Trading Currencies, the Japanese Yen, the U.S