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Chapter 3

Liquidity surpluses and deficits

2.1 Businesses

Receipts Payments Dealing with differences

 Sales  Wages  Short term – overdraft
revenue
 Purchases  Medium term – loans, leasing

 Capital exp.  Long term – equity, loans

 Acquisitions

2.2 Governments

Receipts Payments Dealing with differences

 Tax  Wages  Short term – Central bank credit facility

 Suppliers  Medium term – loans, bonds

 Pensions  Long term – loans, bonds

 Capital exp

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