Answer:
1. $5,250 billion.
2. $3,000 billion.
Explanation:
1. M1 = M2 - Savings deposits - Money market mutual funds - Small time deposits
M1 = $13,700 billion - $7,000 billion - $700 billion - $750 billion
M1 = $5,250 billion
Thus, M1 is $5,250 billion.
2. Currency in circulation = M1 - Checking deposits
Currency in circulation = $5,250 billion - $2,250 billion
Currency in circulation = $3,000 billion
Thus, the amount of currency in circulation is $3,000 billion.
