When the Fed Sells Foreign Assets and Buys Domestic Assets

question 52

Multiple Choice

When the Fed sells foreign assets and buys domestic assets at the same time

• A) its assets and liabilities rise by the same amount.
• B) its assets and liabilities fall by the same amount.
• C) the composition of its assets changes, but its liabilities are unaffected.
• D) the composition of its liabilities changes, but its assets are unaffected.