2. According to the "Impossible Trinity," countries have to select any two of the following three policy objectives (but not the third): I. Fixed Exchange Rates, Pegged Exchange Rates and Flexible Exchange Rates J. Free Capital Mobility, Independent Monetary Policy and Fixed Exchange Rates K. Free Capital Mobility, Capital Controls and Fixed Exchange Rates L. Capital controls, Independent Monetary Policy and Free Capital Mobility 5. Flabovia's Central Bank is facing pressure from its trading partners to appreciate its currency, the Flab. The Bank intervenes in the foreign exchange market by selling its currency continuously and thus accumulating huge international reserves. The type of intervention utilized by the Flabovian authorities is referred to as: K. Free Float L. Neutral M. Positive reserve method N. Leaning against the wind 0 . Unofficial pegging 6. Sterilized foreign exchange market intervention: K. Is also referred to as monetary intervention L. Generally applies only to fixed exchange rate systems (especially during economic downturns) M. Generally results in less drastic exchange rate change than that generated by monetary intervention N. Generally results in more drastic exchange rate change than the change generated by non-sterilized intervention 7. The World Bank Group includes the following organization: A. The Bank for International Settlements B. The International Monetary Fund C. The International Finance Club D. The Multilateral Insurance Guarantee Agency E. The World Wildlife Federation 20. According to the Traditional Model of Exchange Rate determination, a relative increase in U.S. interest rates will: A. Lead to a depreciation of the US\$ B. Lead to an appreciation of the US\$ C. Eventually increase US exports but decrease US imports D. Lead to an appreciation of the foreign currency