Suppose the Central Bank of a Country Is Making No

Multiple Choice

Suppose the central bank of a country is making no transactions in the foreign-exchange market.In this case,it is likely that

A) the central bank has pegged the exchange rate so that the current and capital accounts sum to zero.
B) the exchange rate is being determined freely in the foreign-exchange market.
C) this country must not be engaging in international trade.
D) there must be a disequilibrium in the foreign-exchange market.
E) this country has a pegged exchange rate and persistent surpluses on its balance of payments.