Final answer:
The rate at which a foreign exchange dealer sells currency is known as the ask price or offer. Within a floating exchange rate system, such as that of the U.S. dollar, this price, as well as the opposing bid price, fluctuates according to the foreign exchange market forces.
Step-by-step explanation:
When a foreign exchange dealer gives a quote for selling currency, this rate is referred to as the ask price or offer. In a floating exchange rate system, such as the one the U.S. dollar operates under, the rates are determined by the foreign exchange market. Most banks and some other firms act as dealers, offering foreign exchange services and participating in what is known as the interbank market.
The ask price is the price at which the dealer is willing to sell the foreign currency to a buyer. This is contrasted with the bid price, which is the rate a dealer is willing to pay to buy a currency. The difference between these prices is known as the spread, which represents the dealer's profit margin on the transaction.
Floating exchange rates can lead to more fluctuation in currency values. About 40% of the countries in the world economy, including the U.S., allow their currencies to float, meaning the rates can change rapidly in response to market forces.