a country is said to have this type of exchange rate when its government keeps the exchange rate against other currencies at or near a particular target. floating fixed stable flat a country is said to have this type of exchange rate when the rate is allowed to move with the market. fixed floating variable free market foreign exchange controls are policies that limit the rights of governments to fix exchange rates. of governments to set interest rates. of central banks to hold foreign currency. of individuals to buy foreign currency. governments can buy and sell currency internationally through exchange market intervention. open market initiatives. capital market intervention. foreign exchange controls. when a government buys and sells currency internationally, it directly impacts the quantity of what within its country? foreign-owned assets domestic savings foreign exchange reserves foreign investment