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

Question

Quizplus · Accepted Answer

The liabilities side of a central bank's accounts consists of deposits held by private banks and currency in circulation. This means the central bank owes this money to private banks and the public, respectively. Foreign assets and domestic assets are recorded on the asset side of the central bank's accounts.

The Liabilities Side of a Central Bank's Accounts Consists of