The Figure Given Below Depicts the Equilibrium in the Foreign

The figure given below depicts the equilibrium in the foreign exchange market.
Figure 13.1

-Refer to Figure 13.1. If the exchange rate is fixed at E₂ but the free market equilibrium rate is E₁ then:

A) there is a shortage of British pounds at E₁.
B) no intervention is necessary to achieve the exchange rate E₁.
C) there is a permanent surplus of U.S. dollars at E₁.
D) there is a permanent surplus of U.S. dollars at E₂.
E) there is a permanent shortage of U.S. dollars at E₃.