What would happens to the level of gross debt

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Q.Suppose the National Bank of Commerce has excess reserves of $8,000 and outstanding checkable deposits of $150,000. If the reserve ratio is 20 percent, what is the size of the bank's actual reserves

Q. If 100 percent of the deficit is financed by the sale of securities to federal agencies, what happens to the amount of debt held by the public? What would happens to the level of gross debt?

Reference no: EM1347227

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