WHICH TYPE OF CURRENCY REGIME DEPENDS ONLY ON THE SUPPLY AND DEMAND FOR THE CURRENCY? a. fixed exchange rate b. market exchange rate c. floating exchange rate d. managed floating exchange rate

The correct answer is c. floating exchange rate.<br /><br />A floating exchange rate is a type of currency regime that depends solely on the supply and demand for the currency. In a floating exchange rate system, the value of a currency is determined by market forces, such as the buying and selling of the currency in the foreign exchange market. The exchange rate fluctuates based on the relative supply and demand for the currency, without any intervention from the central bank or government.<br /><br />In contrast, a fixed exchange rate is determined by a central authority, such as a central bank, and is not solely dependent on market forces. A managed floating exchange rate, also known as a hybrid system, is a combination of fixed and floating exchange rates, where the central bank occasionally intervenes to stabilize or adjust the exchange rate.