Which one of the following statements is most true?

A.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank’s claims on the home country implies a decreased foreign money

B.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank’s claims on the home country implies a decreased foreign money

C.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in a foreign central bank’s claims on the home country implies a decreased foreign money

D.There is not a clear connection between the

E.None of the

Answer: C