A ___ is a currency whose value is determined by the supply and demand for the currency in the market.

A. pegged currency

B. base currency

C. reserve currency

D. floating currency

The currency whose value is determined by the supply and demand for the currency in the market is called floating currency.

Answer: Option D

Explanation:

The floating currency is determined by the supply and demand related to other currencies in the open market. Most of the global currencies are floating but while the price goes too high or low the central bank and government intervenes. They attempt to implement measures to get a favourable price.

This is done to create an impact in the flowing of investors to the country. Since attempt to control the prices have historically failed many countries have opted for this floating currency. Floating currency hence changes in relative value all the time.