Business, Legal & Accounting Glossary
A system where exchange rates are determined entirely by the markets. Governments may attempt to increase or decrease the value of a currency by using monetary and fiscal policies, but in this system, they do not directly interfere with the value of a currency. For example, the value of the US dollar is driven entirely by market factors such as supply and demand, though the Federal Reserve controls the money supply and can increase or decrease their spending.
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This glossary post was last updated: 20th November, 2021 | 0 Views.