Floating exchange rates

A) float according to the laws of supply and demand.
B) are fixed by speculators in foreign exchange markets.
C) are rarely used in foreign exchange transactions.
D) All of the choices are true characteristics.

Floating Exchange Rates

A system in which the value of a currency is determined by the forex market based on supply and demand relative to other currencies, unlike fixed exchange rates that are tied to a physical commodity or another currency.