When a Central Bank Buys Foreign Assets

question 15

Multiple Choice

When a central bank buys foreign assets,

• A)its holdings of foreign assets rise by the amount of the purchase, but the monetary base is unaffected.
• B)its holdings of foreign assets and the monetary base rise by the amount of the purchase.
• C)its holdings of foreign assets rise by the amount of the purchase, and the monetary base rises by the amount of the purchase times the money multiplier.
• D)the monetary base falls by the amount of the purchase.

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Definitions:

Harlem Renaissance

A cultural, social, and artistic explosion that took place in Harlem, New York, during the 1920s, where African American writers, artists, musicians, and thinkers sought to define a new black cultural identity.

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Policies that set a specific limit on the number and/or type of immigrants allowed to enter a country per year.

1910 Census

A national enumeration conducted in the United States in 1910 that provided comprehensive data on population distribution, demographic characteristics, and economic status.

New Negro

describes a movement promoting African American cultural appreciation and racial equality during the Harlem Renaissance in the 1920s.