If the U.S. government increased its holdings of British pounds, definitely
A) the capital and financial account would increase.
B) the capital and financial account would decrease.
C) there would be an increase in U.S. official reserves.
D) there would be a decrease in U.S. official reserves.

Question

Quizplus · Accepted Answer

When the U.S. government increases its holdings of British pounds, it is adding to its official reserves, leading to an increase in U.S. official reserves.

If the US Government Increased Its Holdings of British Pounds, Definitely