Final answer:
The correct terms for your question are 'foreign exchange market' for the system in which currencies are traded and 'exchange rate' for the price at one currency can be exchanged for another.
Step-by-step explanation:
The market in which the currency of one country is exchanged for the currency of another country is known as the foreign exchange market. The price at which one currency exchanges for another currency is called the exchange rate. Therefore, the correct answers for the blanks in your question would be: A. foreign exchange market; B. exchange rate.
In foreign exchange markets, individuals and firms convert one currency into another for various reasons, including trade, investment, and speculation. The exchange rate is a critical factor in international economics as it affects the cost of imports and exports, as well as the return on international investments. Governments and central banks may intervene in these markets to influence their currency value for economic policy purposes.