Question $20$

$0/0\mathrm{.}91$ pts

What does the double$-$entry approach in terms of the central bank balance sheet construction imply? Select one $-$ the most appropriate answer.

The total decrease in assets must equal the total increase in liabilities.

All cash inflows are recorded as credits and all cash outflows are recorded as debits.

All credits associated with cash inflows must be offset by respective debits associated with cash outflows.

The total increase in assets must equal the total decrease in liabilities.

All increases in assets are recorded as debits and all increases in liabilities are recorded as credits.