What is recycling in terms of global trade? Foreign central banks buy dollars reserves and then use them to lower their exchange rate for exports. Dollars leave the country to buy goods and those dollars come back to the US to buy US Treasuries. Dollars leave the country to buy goods and stay in dollars at foreign banks. Question 12 4 pts Assume a central bank creates $100 and the reserve requirement is 10%, how much can a bank create in credit via fractional reserve banking? $900 $800 $1,000 $100