1) The balance sheet for the central bank of Pecunia is shown below: Central Bank Balance Sheet Assets Foreign assets $1,000 Domestic assets $1,500 Liabilities Deposits held by private banks Curr $500 $2,000 ency in circulation 1a) What is the new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency? Assets Foreign assets Domestic assets Liabilities Deposits held by private banks Curr ency in circulation lb) What is the new balance sheet if the bank purchased $100 in foreign bonds by writing a check on itself? Assets Foreign assets Domestic assets Liabilities Deposits held by private banks Curr ency in circulation 1c) What is 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. Assets Foreign assets Domestic assets Liabilities Deposits held by private banks Currency in circulation