Foreign currency assets held by a government for the purpose of purchasing domestic currency in the foreign exchange market are called:
A)purchasing-power-parity funds.
B)international reserves.
C)balance-of-payment currency.
D)fixed-exchange-rate deposits.

Question

Quizplus · Accepted Answer

International reserves are foreign currency assets held by a government for the purpose of purchasing domestic currency in the foreign exchange market.

Foreign Currency Assets Held by a Government for the Purpose