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When the exchange rate is allowed to shift gradually over​ time, or within an exchange rate...

When the exchange rate is allowed to shift gradually over​ time, or within an exchange rate band which may also shift over​ time, this is considered​ a(n)

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When the exchange rate is allowed to shift gradually over​ time, or within an exchange rate band which may also shift over​ time, this is considered​ a floating exchange rate.

Floating exchange rate is a type of exchange rate which adjusts to the demand and supply forces of the market and the government does not fix the exchange rate of the home country. The home currency's value is allowed to fluctuate according to the foreign-exchange market's demand and supply of currencies. So, in a floating exchange rate, the exchange rate is allowed to shift gradually over time, or within an exchange rate band which may also shift over time.

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