Economics A-Level
Freely floating exchange rate system
What Freely floating exchange rate system means in Economics A-Level, as defined for AQA.
Definition of Freely floating exchange rate system
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Reference: AQA
A system in which the value of a currency is determined solely by the market forces of supply and demand, without government or central bank intervention.
Topics that use Freely floating exchange rate system
- Exchange rate systems (AQA A-Level)
Related terms
- Appreciation
- Asymmetric economic shock
- Balance of payments
- Currency union
- Depreciation
- Fixed exchange rate systems
- Floating exchange rate systems
- Hot money flows
Using Freely floating exchange rate system in the exam
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