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The Congressional Research Service estimates that at least $45 million of counterfeit U.S. $100 notes produced by the North Korean government are in circulation.
a. Why do U.S. taxpayers lose because of North Korea’s counterfeiting?
b. As of September 2008, the interest rate earned on one-year Treasury bills was 2.2%. At a 2.2% rate of interest, what is the amount of money U.S. taxpayers are losing per year because of the $45 million in counterfeit notes?
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