Question

Describe how exchange rates get set.​

Answer 1

Currency prices can be determined in two main ways: a floating rate or a fixed rate. A floating rate is determined by the open market through supply and demand on global currency markets. ... 4 Therefore, most exchange rates are not set but are determined by on-going trading activity in the world's currency markets.

Step-by-step explanation:

Answer 2

- If a currency is free-floating, its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand. Exchange rates for such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.

To set it, it's mostly the exchange rates will be set on an open foreign exchange market.