The supply of international reserves consists of owned reserves and borrowed reserves.

Question

Quizplus · Accepted Answer

The supply of international reserves can indeed come from both owned reserves, which are reserves accumulated through trade surpluses or foreign investment, as well as borrowed reserves, which are typically obtained through loans or other forms of credit. Therefore, both types of reserves make up the overall supply of international reserves.

The Supply of International Reserves Consists of Owned Reserves and Borrowed