A balance sheet for the central bank shows assets of _____ and liabilities of ______.
A) gold and silver; foreign obligations
B) reserves (foreign currency and foreign bonds); domestic currency (money supply)
C) private individuals; public entities
D) large money center banks; corporate borrowers

Question

Quizplus · Accepted Answer

The central bank's assets typically consist of reserves in foreign currency and foreign bonds, while its liabilities consist of the domestic currency in circulation, also known as the money supply.

A Balance Sheet for the Central Bank Shows Assets of _____