Discuss the operations depicted in the following two figures.Contrast the operation on the left with the one on the right with a view to their effects on the money supply.
Definitions:
Foreign Assets
Investments or properties owned by individuals or entities in countries other than their home country.
Investments Abroad
Allocation of resources by individuals, corporations, or governments in foreign countries for the purpose of acquiring assets or stakes in companies.
Exchange Rate
The value at which the currency of one nation can be converted into the currency of another nation.
Euros
The official currency used by 19 of the 27 European Union countries, known collectively as the Eurozone.
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