Show how an expansion in the central banks domestic assets ultimately affects its balance sheet under a

Question:

Show how an expansion in the central bank’s domestic assets ultimately affects its under a fixed exchange rate. How are the central bank’s transactions in the reflected in the balance of payments accounts?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...