Which One of the Following Statements Is the Most Correct

question 68

Multiple Choice

Which one of the following statements is the most correct?

• A)If central banks are not sterilizing and the home country has a balance of payments surplus,any associated increase in the home central bank's foreign asset implies an increased home money supply.
• B)If central banks are not sterilizing and the home country has a balance of payments surplus,any associated increase in the home central bank's foreign asset implies a decreased home money supply.
• C)If central banks are not sterilizing and the home country has a balance of payments surplus,any associated increase in the home central bank's foreign asset implies an increased home money demand.
• D)If central banks are not sterilizing and the home country has a balance of payments surplus,any associated decrease in the home central bank's foreign asset implies an increased home money supply.
• E)If central banks are not sterilizing and the home country has a balance of payments shortage,any associated decrease in the home central bank's foreign asset implies an increased home money supply.

---

Definitions:

T-Accounts

A bookkeeping tool used to visualize and manage debits and credits for individual accounts.

Services Provided

Tasks or duties performed for clients or customers that often constitute the business's revenue basis.

Stockholder Investments

The funds or resources contributed by shareholders to a corporation in exchange for ownership shares.

Net Income

The total profit of a company after subtracting all expenses from revenue.