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Floating exchange rates

Floating exchange rates

Demand and supply diagram for pounds showing the equilibrium exchange rate

An exchange rate is the price of one currency expressed in terms of another. In a freely floating system, demand and supply in the foreign exchange market determine the rate without government intervention.

2.6.4 Exchange rate systems Lesson

  1. A Level
  2. /Economics
  3. /2.6.4 Exchange rate systems

Step-by-step lessons on AQA A Level Economics 2.6.4 Exchange rate systems. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons