One of the major complaints regarding foreign exchange rates and flexible exchange rates is that the exchange rates are too volatile when they float. Define how the following contributes to volatility...

Foreign Exchange Rate
Foreign exchange rate can be defined as the price or value of one country which is expressed in
another country’s currency. It is the rate or price at which the currency of one country can be
exchanged for another. Higher the exchange rate for one dollar in terms of euro, the lower the
relative value of euro.
Flexible Exchange Rate
Flexible Exchange Rate can be defined as the rate that fluctuates in accordance to the demand
and supply of a currency in respect to other currencies. The high demand for a currency increases
its exchange rate in relation to other currencies and on the other hand, if the demand is less then...