Question

The flexible exchange-rate system is _____. answers

Answer 1

a monetary system

Step-by-step explanation:

Flexible exchange rate system is a monetary system and under this system, the determination of the exchange rate depends on the supply and the demand.

Under this system the value of the currency changes depending on the demand and supply of the foreign exchange.

There are many countries which follow this monetary system and one such country is India.

Answer 2

The flexible exchange rate system is being determined by the supply and demand. In this, no government intervention in the Forex rate is needed thus it is sometimes called as self correcting since any difference in the supply as well as the demand can be reflected in the exchange rate.