1. The exchange rate system where multinational corporations know the future exchange rates, but there is a risk of governments revaluing their currency is a _____________ exchange rate system.

1. Fixed
2. Managed float
3. Freely floating
4. Pegged

2. When the Fed manipulates interest rates, they are participating in ________________.

A. Direct intervention

B. Sterilized intervention

C. Non-sterilized intervention

D. Indirect intervention