Final answer:
Another term for flexible exchange rates is floating exchange rates, where currency values fluctuate based on supply and demand in the market without government intervention.
Step-by-step explanation:
Another term for flexible exchange rates is floating exchange rates. This is an exchange rate regime where the value of a currency is allowed to fluctuate in response to foreign exchange market mechanisms without direct government or central bank intervention. Under these conditions, a currency's exchange rate is determined by supply and demand factors on the international market.
Floating exchange rates are used by countries such as the United States, and about 40% of countries worldwide operate under this system. A key aspect of this policy is that it can lead to significant fluctuations in exchange rates over short periods, which is a major concern for international trade and finance.