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1)What happen to the net public debt if the federal government operates next year with a:
1) Budget deficit?
2) balanced budget?
3) budget surplus?
2) A bank has $120 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities are $120 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total legal reserves equal $6 million. What is the required reserve ratio?
1 answer
1 answer