The Figure Above Shows the Market for Foreign Exchange in 2001

The figure above shows the market for foreign exchange in 2001 and 2009.
Suppose the Fed had tried to keep the exchange rate at its 2001 level. In that case the Fed would have_{--------------------} dollars and its foreign reserves would have_{--------------------} .

A) bought; decreased
B) sold; increased
C) bought; increased
D) sold; decreased
E) None of the above are correct because the Fed cannot affect the exchange rate.