E . Explain the central bank's balance sheet. What components are on the assets side? What components are on the liabilities side? What is the relationship between the central bank's assets, liabilities and money supply? Q2. Explain how asset purchases (sales) conducted by the central bank will affect a central bank's balance sheet and money supply. Q3. Explain how a sterilized foreign asset purchase (sale) conducted by the central bank will affect a central bank's balance sheet and money supply. Q4. Suppose that the central bank implements an expansionary (contractionary) monetary policy by buying (selling) domestic assets under the fixed exchange rate regime. (a) Explain how the economy is affected, using the DD-AA graph. Compare the initial and new equilibria in terms of output and exchange rate levels. (b) Explain the shift (or no shift) of DD and (or) AA schedules, using both words and the graphs for output market equilibrium and/or assets market equilibrium. (c) Explain what happens to (1) the central bank's foreign asset holdings, (2) the country's Balance of Payments (official settlements balance), (3) the central bank's balance sheet, and (4) the country's money supply. Additionally, explain how the central bank's intervention in the foreign exchange market