Which of the following is true? If a central bank runs out of reserve assets, then:

a. Actually, it is impossible for a nation to run out of reserve assets because the central bank could always print more money to increase it.
b. It cannot intervene in the foreign exchange market to raise the value of the nation's currency.
c. It must fix its exchange rate to a strong currency because the central bank can no longer allow the currency to fluctuate.
d. The central bank must borrow from its Treasury to increase the nation's reserve assets.
e. It cannot intervene in the foreign exchange market to lower the value of the nation's currency.


.B

Economics

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