The international adjustment mechanism for flexible exchange rates is the same as for managed float regimes

The recent interventions in Sudan, Yugoslavia, and Libya were all motivated by the need to _______, while Rwanda in 1994 and Syria in 2012 had the same need but lacked such intervention.

Fill in the blank(s) with the appropriate word(s).

The key assumption of the liquidity premium theory is that investors

A) view bonds of different maturities as perfect substitutes. B) view bonds of different maturities as completely unsubstitutable. C) always choose the bond with the highest expected return, regardless of maturity. D) care about both expected returns and time to maturity.