Economics GCSE
Floating Exchange Rate
What Floating Exchange Rate means in Economics GCSE, as defined for Pearson Edexcel.
Definition of Floating Exchange Rate
An exchange rate system where the value of the currency is determined by the market forces of supply and demand.
Topics that use Floating Exchange Rate
- Exchange rates (Pearson Edexcel GCSE)
Related terms
Using Floating Exchange Rate in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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