Question

A central bank ________ of domestic currency and corresponding ________ of foreign assets in the foreign exchange market leads to an equal decline in its international reserves and the monetary base, everything else held constant. Purchase; sale purchase; purchase sale; purchase sale; sale

Answer 1

Answer:

Answer = Domestic currency , Foreign assets

A central bank ________ of domestic currency and corresponding ________ of foreign assets in the foreign exchange market leads to an equal decline in its international reserves and the monetary base, everything else held constant. Purchase; sale purchase; purchase sale; purchase sale; sale