Under a floating exchange rate system: ​

A) The exchange rates are determined by the International Monetary Fund ​
B) The exchange rates are determined by an international treaty ​
C) The exchange rates are determined by free market forces ​
D) The exchange rates are determined by each country ​

Under a floating exchange rate system, the exchange rates are determined by free market forces, mainly through supply and demand for the currencies. There is no fixed exchange rate, and the currency value is allowed to fluctuate in response to various economic factors such as inflation, interest rates, and political events. The IMF or international treaties do not play a role in determining the exchange rates under this system. Each country's monetary policies and economic conditions can influence the value of its currency in the market.