Currency in Circulation (2019) 20.25 billion currency units Reserves (2019) 17.10 billion currency units M1 (2019 1,232.95 billion currency units M2 (2019) 1,319.40 billion currency units 2. Calculate the size of the monetary base in 2019. Calculate the size of demand (checking) deposits in 2019. Calculate the size of savings deposits in 2019.

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.