Balance sheet for the central bank of an economy

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Reference no: EM132281149

A) A balance sheet for the central bank of an economy is shown below:

Central Bank Balance Sheet

Assets                                           Liabilities

Foreign assets   $1,000                Deposits held by private banks $500

Domestic assets $1,500                Currency in circulation         $2,000

Please write the new balance sheet if the bank makes a sterilized transaction by selling $100 of foreign assets for domestic currency and then purchasing $100 of domestic assets by writing a check on itself.

Reference no: EM132281149

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