imagine that the Guyanese dollar is pegged to the Euro. Imagine that the rising popularity of European goods pushes the exchange rate outside of the band determined by the Guyanese government.

a, what must the guyanese monetary authority do in order to put the exchange rate back in the government's preferred range? why is it necessary for them to do this? (graph)

b, How will this activity be recorded on the Guyanese balance of payments? explain