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see attached questions.... please provide answers and explanations. A - The Peruvian crisis of 1986 - using the central bank's balance sheet and a money

see attached questions.... please provide answers and explanations.

image text in transcribed A - The Peruvian crisis of 1986 - using the central bank's balance sheet and a money market diagram, explain why and how the Peruvian CB lost 75% of its international reserves in two years. B - Suppose your country, lets call it Snow, pegs their currency to the US dollar and that the Federal Reserve embarks on a highly accommodative monetary policy driving US interest rates to historical lows. Using the central bank's balance sheet for Snow and a money market diagram along with an FX diagram, show and explain how all are affected by the Fed's accommodative monetary policy. Assume that the central bank of snow maintains the same amount of domestic credit (B). Let point A represent conditions before the Fed's expansion and point B the conditions after

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