If assets are imperfect substitutes, then a decrease in the ...

[Lisaclaire]

If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank.
 
  A) decrease; leave unchanged
  B) increase; decrease
  C) increase; increase
  D) decrease; decrease
  E) leave unchanged; decrease

Question 2

Every international transaction automatically enters the balance of payments
 
  A) once either as a credit or as a debit.
  B) twice, once as a credit and once as a debit.
  C) once as a credit.
  D) twice, both times as debit.
  E) the times, once as a credit, onces as a debit, and once as an exchange.

[dajones82]

Answer to Question 1

A

Answer to Question 2

B