The exchange rate as a market price
The exchange rate as a market price
An exchange rate is the price of one currency in terms of another. Under a floating system, market demand for and supply of the currency determine this price without the government fixing it.
Step-by-step lessons on CIE Intl A Level Economics 6.4.4 causes of changes in a floating exchange rate: demand and supply of the currency. Each one builds up to exam-style questions.