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Economics 101: The Money Multiplier 1. In 2013, there were 1.1595 trillion dollars of currency in circulation, 3.5 billion in traveler's checks, 1.4758 trillion in checkable deposits, 7.133 trillion in savings accounts, 555.6 billion in time deposits and 640.9 billion in money market accounts. Calculate the M1. . 2. Using the information above, calculate the M2. For the next few questions, use the formula Multiplier = 1/RR to calculate the money multiplier at each of the following values for the reserve requirement. 3. RR = 0 (no reserve is necessary) 4. RR = 0.05 5. RR = 0.10 6. RR = 0.20 7. RR = 0.25 8. RR = 1.00 9. What happens to the multiplier when the reserve requirement increases? 1 If needed, skip this one and come back to it