What Does It Mean for a Country That Is on a Fixed

Multiple Choice

What does it mean for a country that is on a fixed exchange-rate system to have a balance of payments surplus?

A) The quantity supplied of its currency on the international money market will exceed the quantity demanded.
B) The exchange rate is overvalued.
C) There is an inflow of foreign currencies into the country.
D) The balance of payments surplus is matched by a balance of trade deficit.
E) There is an outflow of foreign currencies from the country.