Asked by
Erica Smith
on Nov 26, 2024Verified
Official reserves used to achieve a balance of payments between nations engaging in international trade are held by
A) private businesses engaging in trade.
B) central banks of the nations engaged in trade.
C) commercial banks, which make loans to businesses engaging in trade.
D) commercial banks, which make loans to governments that engage in trade.
Official Reserves
Foreign currencies owned by the central bank of a nation.
Balance Of Payments
A document detailing every financial transaction between a country's inhabitants and international entities within a specific timeframe.
Central Banks
Primary financial institutions responsible for the oversight and management of a country's currency, money supply, and interest rates, aiming to stabilize the economy.
- Understand the role of official reserves in the international balance of payments.
Verified Answer
SB
Learning Objectives
- Understand the role of official reserves in the international balance of payments.