Federal reserve notes, What is M1 in Iron mania. What is M2

Federal reserve notes

Assignment Help Business Economics

Reference no: EM137830

Q. Assume that the following asset values (in millions of dollars) exist in Ironmania:

Category Value
Federal Reserve Notes in circulation $800
Money market mutual funds (MMMFs) held by individuals 400
Corporate bonds 300
Iron ore deposits 50
Currency in commercial banks 120
Savings deposits, including money market deposit accounts (MMDAs) 140
Checkable deposits 1700
Small-denominated (less than $100,000) time deposits 100
Coins in circulation 40

a. What is M1 in Iron mania? $ million

b. What is M2 in Iron mania? $ million

Reference no: EM137830

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