A fixed exchange rate is enforced by:

A) national governments,who establish appropriate trade barriers for each country they trade with.
B) national governments,who manipulate gold reserves appropriately.
C) central banks,who buy and sell appropriate currencies.
D) the International Monetary Fund,which offers loans to its member countries.
E) local governments,who manipulate capital reserves appropriately.

Fixed Exchange Rate

Rate of exchange between currencies pegged within a narrow range and maintained by the central bank’s ongoing purchases and sales of currencies.

Central Banks

National financial institutions that provide financial and banking services for a country's government and commercial banking system, as well as implementing the government's monetary policy and issuing currency.

Trade Barriers

Measures imposed by governments to regulate international trade, often to protect domestic industries from foreign competition.