Which of the following is counted in the domestic assets of a central bank?
A) money that the central bank issues to pay for purchases of domestic bonds
B) domestic bonds that it purchases with money that it issues
C) reserve currencies that it purchases with money that it issues
D) money that it issues to purchase reserve currencies

Question

Quizplus · Accepted Answer

Domestic bonds that the central bank purchases with money it issues are counted as domestic assets because they are financial claims within the country's economy. Purchasing domestic bonds increases the central bank's assets within the domestic financial system.

Which of the Following Is Counted in the Domestic Assets