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    Freely Floating Exchange & Managed Floating Exchange Rate

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    Describe the difference between the U.S. Freely Floating Exchange Rate and China's Managed Floating Exchange Rate.

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    Solution Preview

    Basically, in the U.S. we have a freely floating exchange rate, which means that our exchange rate is set by two primary factors - supply and demand in the foreign exchange market. The U.S. government does not interfere in this process and does not attempt to influence the exchange rates in ...

    Solution Summary

    This solution describes the difference between the U.S. freely floating exchange rate and China's managed floating exchange rate.