The exchange rate for converting the U. S. dollar into other currencies is continuously adjusted depending on the laws of supply and demand. This illustrates a exchange rate.

Floating

Explanation:

Exchange rate is the rate at which one currency can be exchanged with another currency.

A floating exchange rate is an exchange rate regime where the forces of demand and supply determine exchange rate. The exchange rate fluctuates with changes in demand and supply

This contrasts with a fixed exchange rate where the government determines the exchange rate

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