Assume that the following asset values (in millions of dollars) exist in Ironmania:CategoryValue (Millions)Federal Reserve Notes in circulation$700Money market mutual funds (MMMFS) held by individuals400Corporate bonds300Iron ore deposits50Currency in commercial banks110Savings deposits, including money market deposit accounts (MMDAS)140Checkable deposits1,600Small-denominated (less than $100,000) time deposits100Coins in circulation40Instructions: Enter your answers as a whole number.a. What is MM in Ironmania?millionb. What is M2 in Ironmania?million

M1 and M2 are different classification of money supply.

Answered: a. What is MM in Ironmania? million b.…

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Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 4P

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Question

Assume that the following asset values (in millions of dollars) exist in Ironmania:
Category
Value (Millions)
Federal Reserve Notes in circulation
$700
Money market mutual funds (MMMFS) held by individuals
400
Corporate bonds
300
Iron ore deposits
50
Currency in commercial banks
110
Savings deposits, including money market deposit accounts (MMDAS)
140
Checkable deposits
1,600
Small-denominated (less than $100,000) time deposits
100
Coins in circulation
40
Instructions: Enter your answers as a whole number.
a. What is MM in Ironmania?
million
b. What is M2 in Ironmania?
million

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