If the value of a country's currency is determined only by the demand and supply for that country's currency, the country is said to have a

Question

Quizplus · Accepted Answer

A floating exchange rate system refers to a system in which the value of a currency is determined by market forces of supply and demand, without any government or central bank intervention. In this system, the exchange rate is allowed to freely float and fluctuate based on changes in the market. This is in contrast to a fixed exchange rate system, where the government or central bank intervenes in the market to maintain a fixed exchange rate. The gold standard and Bretton Woods exchange rate systems are historical systems that no longer exist. A managed float system is a hybrid system where the government or central bank occasionally intervenes in the market to influence the currency's value.

If the Value of a Country's Currency Is Determined Only