When a Central Bank Buys Foreign Assets

question 48

Multiple Choice

When a central bank buys foreign assets,

• 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.

---

Definitions:

Website's Server

The physical or virtual server that hosts the files and databases necessary for delivering content and functionality of a website.

Desktop Computer

A personal computing device designed for regular use at a single location on or near a desk due to its size and power requirements.

Office's Server

A server configured or utilized in an office environment for various tasks such as file sharing, email, or application hosting.

Designer's Computer

A computer system equipped with specialized software and hardware to aid in the process of design, often used by graphic designers, architects, and engineers.