uiz 10 - Questions Question 1 A currency is said to appreciate against a foreign currency when the nominal exchange rate goes A. down, meaning the domestic currency now buys less of the foreign cur rency. B. down, meaning the domestic currency now buys more of the foreign cur rency. C. up, meaning the domestic currency now buys less of the foreign cur rency. D. up, meaning the domestic currency now buys more of the foreign cur rency. Question 2 How does a flexible exchange rate differ from a managed exchange rate? A. A flexible exchange rate involves government intervention, while a man aged exchange rate does not. B. A flexible exchange rate is set at a longrun value determined by the gov ernment, while a managed exchange rate can vary day to day depending on government actions. C. A managed exchange rate involves government intervention, while a f lexible exchange rate does not. D. A managed exchange rate is set at a longrun value determined by the government, while a flexible exchange rate can vary day to day depend ing on direct government actions. Question 3 How does a fixed exchange rate differ from a managed exchange rate? A