A central bank’s ability to achieve its policy goals is most likely to be limited by available resources when which of the following actual rates is below its target rate?

With exchange rate targeting, a central banks ability to increase the value of the domestic currency is limited by the amount of foreign reserves the country has available to buy its own currency in the foreign exchange market. While inflation targeting and interest rate targeting have limitations (e.g., liquidity trap conditions may exist, interest rates are bounded by zero), the central banks resources are not typically a limitation.