The Central Bank of a country maintains a fixed exchange rate, which is defined as the number of units of domestic currency per unit of foreign currency. Currently the domestic currency is overvalued against the foreign currency. In this context, indicate the kind of intervention required by the Central Bank to maintain the parity, by putting the following statemenets in correct order.

(A) The demand for foreign currency exceeds its supply

(B) The exchange rate is lower than the market clearing exchange rate

(C) The gap between supply and demand for foreign currency is equalized

(D) The Central Bank's stock of foreign currency is depleted

(E) The Central Bank sells foreign currency from its stock of reserves

Choose the correct answer from the options given below: 

1
(B), (E), (A), (D), (C)
2
(B), (A), (E), (D), (C)
3
(B), (E), (A), (C), (D)
4
(B), (A), (E), (C), (D)

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