freely floating system


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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The freely floating system was moving along well and I wondered how the markets would be changing in the future.

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You should try to figure out the best way to take advantage of a freely floating system and get in at the right times.

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The freely floating system was an example of the free market thriving in an economy where supply and demand decide all.

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