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What is the velocity of money

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1. If bank A borrows $10 million from bank B, what happens to the reserves in bank A? In the banking system? Please explain.

2. If bank A borrows $10 million from the Fed, what happens to reserves in bank A?. In the banking system? Please explain.

3.  The nation collectively holds enough money to finance how many days worth of GDP expenditure?

Reference no: EM131286311

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