In a Fixed Exchange Rate System

In a fixed exchange rate system,

A) Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.
B) A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade.
C) The capital account surpluses must offset current account deficits.
D) A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies.A surplus or shortage of currency can be eliminated by allowing the currency's value to be determined by the forces of supply and demand.