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Flexible Exchange Market
A foreign exchange system where the value of currencies are determined by market forces without direct government intervention.
Equilibrium Exchange Rate
The exchange rate at which the demand for a currency equals its supply in the foreign exchange market, resulting in a stable market price.
Euros
The official currency of the Eurozone, which is used by 19 of the 27 European Union countries, known collectively as the Euro area.
Foreign Currencies
The currencies of other countries, used for conducting international transactions or as an investment.
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