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When the Fed Sells Foreign Assets to Buy Domestic Assets

Question 65

Multiple Choice

When the Fed sells foreign assets to buy domestic assets,


A) its assets and liabilities rise by the same amount.
B) its assets and liabilities fall by the same amount.
C) the composition of its assets changes, but its liabilities are unaffected.
D) the composition of its liabilities changes, but its assets are unaffected.

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