Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. This is the system of__________
Fill in the blanks with correct word.
ANSWER: floating exchange rates
Currency markets operate under a system of floating exchange rates, a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. Global currency traders create the supply of and demand for a particular country's currency based on that country's investment, trade potential, and economic strength.
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