All of the following are options a government can pursue to maintain a fixed exchange rate after exhausting its foreign exchange reserves, except
A) borrow foreign currencies from the IMF
B) impose import controls
C) impose exchange controls
D) change its exchange rate
E) lend foreign currencies to other countries

Question

Quizplus · Accepted Answer

Lending foreign currencies to other countries would not help a government maintain its fixed exchange rate, especially after exhausting its foreign exchange reserves. This action would further deplete its reserves rather than support the fixed exchange rate.

All of the Following Are Options a Government Can Pursue