If the current account balance is in surplus, the capital account balance is zero, and net private financial flows are insufficient to absorb the surplus, Group of answer choices there is an excess supply of dollars in the foreign exchange market. The central bank can counteract the tendency of the dollar to appreciate by selling foreign official reserves. there is an excess supply of dollars in the foreign exchange market. The central bank can counteract the tendency of the dollar to depreciate by selling foreign official reserves. there is an excess demand of dollars in the foreign exchange market. The central bank can counteract the tendency of the dollar to appreciate by buying foreign official reserves