A Central Bank's Sale of Securities from Its Portfolio Will

question 2

Multiple Choice

A central bank's sale of securities from its portfolio will:

• A) decrease the size of its balance sheet.
• B) have no impact at all on the balance sheet.
• C) only change the composition of its liabilities.
• D) only change the composition of its assets.

---

Definitions:

Closely Held Corporations

A business entity characterized by a small group of shareholders or owners, with limited public trade of its shares, often managed directly by its owners.

RMBCA

Revised Model Business Corporation Act, a model set of laws prepared by the American Bar Association that is intended to standardize and modernize corporate business practices.

Profit-Sharing Plans

A type of retirement plan that gives employees a share in the profits of the company.

Fourth Amendment

A constitutional amendment in the United States protecting citizens against unreasonable searches and seizures by the government.