Concept:A floating exchange rate is determined by market forces, not by government or legal controls.
Explanation:In a floating exchange rate system, the value of a currency changes freely according to the market conditions.
It depends on the demand for and supply of the currency in the foreign exchange market.
When demand rises or supply falls, the exchange rate appreciates.
When demand falls or supply rises, the exchange rate depreciates.
It is not fixed by parliament or by any system of government.
Answer:D. the forces of demand and supply.