On September 3, 2003, the finance ministers of G7 industrialized countries endorsed "flexibility" in exchange rates, a code word widely regarded as an encouragement for China and Japan to stop managing their currencies. Both countries have been actively intervening in the foreign exchange market to weaken their currencies against the dollar and thereby improve their exports. China and Japan had been seen buying billions of dollars in U.S. Treasury bonds. The G7 statement prompted massive selling of the U.S. dollar and dollar assets. The dollar fell 2% against yen, the biggest one-day drop that year, and U.S. Treasury bonds saw a steep decline in value as well.

Based on the text provided select the most appropriate reason for fall in the value of U.S. dollar and Treasury bond in response to G7 statement.

a. endorsing flexibility will force Japan to make fewer purchase of U.S. dollar and Treasury bond

b. Japan will sell U.S. dollars

c. endorsing flexibility will force other G7 countries will sell dollars

d. endorsing flexibility will force other G7 countries will buy more US dollars