If balances in foreign accounts are substantially reduced due to an excess of demand relative to supply:

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When there is an excess of demand relative to supply in foreign accounts, price quotations can be adjusted to influence a decrease in demand and an increase in supply. This is known as market intervention and is a common tool used to stabilize foreign exchange rates. The other options, such as seeking loans from central banks or shipping currency abroad, are less likely to be effective solutions in this scenario. The Export-Import Bank loans mentioned in option D are designed to support international trade rather than balance foreign accounts.

If Balances in Foreign Accounts Are Substantially Reduced Due to an Excess