Question: I need answer from the management perspective. Exercise 12.1 Consider a country with a fixed exchange rate that has a current account surplus of $20

I need answer from the management perspective.

Exercise 12.1 Consider a country with a fixed exchange rate that has a current account surplus of $20 billion, but a financial account deficit of $18 billion. (a) Is its balance of payments in deficit or surplus? Why? (b) What change in official exchange reserves would you see? Why? (c) Is the central bank buying or selling foreign currency? (d) What effect does the central bank's foreign currency purchase or sale have on the monetary base? Explain why

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