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er 17, Mon x ncia.wwnorton.com/18284 mazon.com: Onlin.... Google YouTube N Netflx User Dashboard MMUnet Login Page .. Twitch Imported From Safari xGA Assume the Fed is trying to de Smartwork5 e Federal Reserv... 71% Use the information in the table below to answer the following two questions. tems Savings deposits Money market Billions of $ 8000 700 mutual funds M2 Checking deposits Small time deposits 13700 2750 750 What is M1? billion Part 2 (1 point) O See Hint Now, calculate the amount of currency in billions of dollars in the economy from the given information (assume no traveler\'s checks). billion K 11/15> 11OF 15 QUESTIONS COMPLETED SUBMIT ANSWER MacBook Pro G Search or type URL

Solution

• From the given information, M1 = Checking deposit = $2750 billion

( Savings deposit, money market mutual funds, small time deposits are calculated in M2).

• M1 = Currency + Checking deposit

M2 = M1 + savings deposit + money market mutual funds + small time deposits

Substituting for M1 in the second equation and plugging in the given information,

13700 = Currency + 2750 + 8000 + 700 + 750

Or, Currency = 13700 - 12200 = 1500

Amount of currency = $1500 billion