The liabilities side of a central bank include
A) deposits held by the private banks.
B) currency in circulation.
C) deposits held by the private banks and currency in circulation.
D) deposits held by the private banks, foreign assets, and currency in circulation.
E) foreign assets and domestic assets.

Question

Quizplus · Accepted Answer

The liabilities side of a central bank primarily includes deposits held by commercial banks and currency in circulation. Therefore, only option C correctly identifies these liabilities. Option D includes foreign assets which are not liabilities, while option E includes domestic and foreign assets which are not liabilities.

The Liabilities Side of a Central Bank Include