10.) Sound economic policies will a.) raise the value of a b.) lower the value of a nation's c.) lower the value of a nation's currency by leading d.) both b and c nation's currency by boosting the economy money curreney by increasing the precautionary demand for to lower interest rates Ans: government-type 11.) The interventions. is an exchange rate s ystem that is relatively free from central bank and other a.) managed float b.) clean float c.) dirty float d.) target-zone arrangement Ans: countries adjust their national economic policies to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates. a.) managed float b.) beggar-thy-neighbor" devaluation c.) dirty float d.) target-zone agreement Ans: 13.) Managed floats do NOT fall into which of the following categories of cen a.) smoothing out daily fluctuations b.) leaning against the wind c.) unofficial pegging d.) letting market forces set exchange rates Ans:_