A central bank's purchase of securities made by writing checks on itself will:
A. Decrease the size of its balance sheet.
B. Have no impact at all on the balance sheet.
C. Increase the size of their balance sheet.
D. Only change the composition of its assets.
Answer:C
A central bank's purchase of securities made by writing checks on itself will:
A. Decrease the size of its balance sheet. B. Have no impact at all on the balance sheet. C. Increase the size of their balance sheet. D. Only change the composition of its assets.