Suppose there are more foreign currencies on the market that a central bank purchases. If the central bank does nothing else:

Name: Suppose there are more foreign currencies on the market that a central bank purchases. If the central bank does nothing else:
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When a central bank purchases foreign currencies, it typically pays for them with its own currency. This action increases the amount of domestic currency in circulation, effectively increasing the monetary base.

Suppose There Are More Foreign Currencies on the Market That