1. From the perspective of the central bank, what is the fundamental purpose of the money market?
2. 

d) Let's now assume the following represents the Washington Bank's balance sheet, and most of the bank's customers want to take their savings out of the bank because of reports that the bank has made fraudulent loans to mobsters. I'Vhat is the potential problem for the customers? Explain referring to the bank's balance sheet. Assets Base Mone Loan Total Was $ 1b $330b $ 1b on Bank Balance Sheet Liabilities Payable on demand to customers $331b