If a Country Has a Currency Board Arrangement (With a 100

Multiple Choice

If a country has a currency board arrangement (with a 100 percent reserve system) in Place, then the country's money supply can be increased by a __________ by the Country's central bank.

A) purchase of domestic assets from domestic citizens.
B) purchase of foreign (external) assets from domestic citizens.
C) sale of domestic assets to domestic citizens.
D) sale of foreign (external) assets to domestic citizens.