Choose the correct statements regarding the exchange rate system:
\[
(A)\ \text{In a floating exchange rate system, the exchange rate is determined by market forces of demand and supply.}
\]
\[
(B)\ \text{In a fixed exchange rate system, making the domestic currency cheaper is called devaluation.}
\]
\[
(C)\ \text{An increase in the exchange rate implies that the price of foreign currency has increased, which is called depreciation.}
\]
\[
(D)\ \text{Exchange rates between two currencies adjust to reflect differences in price levels in the two countries.}
\]