Saudi Arabia pegs its currency (the riyal, or SAR) to the U.S. dollar. Currently, the exchange rate is SAR3.75 = $US1. Suppose that the Saudi Arabian money multiplier is 1. Which of the following is NOT included in the assets of the Saudi Arabian central bank?

Question

Quizplus · Accepted Answer

The money supply is not included in the assets of the Saudi Arabian central bank. Reserves and domestic credit are typically included, but the money supply is not an asset of the central bank.

Saudi Arabia Pegs Its Currency (The Riyal, or SAR) to the U.S