Bank lends Consumer $1,000 and Business $10,000 from funds received from depositors. Bank collects $150 interest from

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Bank lends Consumer $1,000 and Business $10,000 from funds received from depositors. Bank collects $150 interest from Consumer and $1,000 interest from Business. Bank pays depositors $770 interest on deposits of $11,000. If the VAT is imposed on the value of financial intermediation services rendered by Bank, what should Bank’s VAT base be and how should it be calculated?

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