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Chako Chako
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Posts: 2948
8 years ago
A balance sheet for the central bank of Pecunia is shown below:

Central Bank Balance Sheet
Assets      Liabilities
Foreign assets   $1,000   Deposits held by private banks   $500
Domestic assets   $1,500   Currency in circulation   $2,000

Please write the new balance sheet if the bank makes a sterilized transaction by selling $100 of foreign assets for domestic currency and then purchasing $100 of domestic assets by writing a check on itself.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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wrote...
8 years ago
Central Bank Balance Sheet
Chako Author
wrote...
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
wrote...
8 years ago
Happy to help you!
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