Question
Given the information in Reuters' article Analysis: Swiss central bank stands by as equities boom drives the franc: (a) What commercial banks account at the
Given the information in Reuters' article Analysis: Swiss central bank stands by as equities boom drives the franc:
(a) What commercial banks account at the Federal Reserve is the equivalent of "site deposits" in Switzerland? Briefly explain.
(b) Why would site deposits tend to increase when the SNB "steps up its currency market purchases to dampen the franc."
(c) The international reserves of many central banks (e.g., the Federal Reserve) tend to be either foreign currency deposits or sovereign bonds. What asset class (e.g., currencies, stocks, bonds, commodities, etc.) is found in the SNB international reserves portfolio that makes it different from other central banks.
Please find the article here:
https://www.reuters.com/business/finance/swiss-central-bank-stands-by-equities-boom-drives-franc-2021-09-20/
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