Answer:
The total currency in circulation is $13 million.
Explanation:
This can be calculated using the following formula:
Total currency in circulation = Monetary base - Vault cash - Deposits by Depository institutions at the central bank ................ (1)
Where;
Total currency in circulation = ?
Monetary base = $15 million
Vault cash = $1 million
Deposits by depository institutions at the central bank = $1 million
Substituting the values into equation (1), we have:
Total currency in circulation = $15 million - $1 million - $1 million = $13 million
Therefore, the total currency in circulation is $13 million.
