Suppose That Canada's Central Bank Fixes the Canada- U

Suppose that Canada's central bank fixes the Canada- U.S. exchange rate between the limits of Cdn$1.10 and Cdn$1.20 to the U.S dollar. If the free market equilibrium exchange rate would otherwise be Cdn$1.05, then

A) The Federal Reserve System in the United States must decrease the supply of U.S. dollars on international currency markets.
B) Canada's central bank must buy U.S. dollars.
C) Canada's central bank must sell U.S. dollars.
D) Government of Canada must increase spending and increase taxes.
E) Canada's central bank need not intervene as the exchange rate will return to its equilibrium level on its own.