What Is M1 In Ironmania?

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What Is M1 In Ironmania?

g asset values (in millions of dollars) exist in Ironmania: Category Value [Federal Reserve Notes in circulation $850] [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] a. What is M1 in Ironmania? b. What is M2 in Ironmania?
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a. M1 equals Federal Reserve Notes in circulation plus checkable deposits plus coins in circulation: M1 = $850 + $1,600 + $40 = $2,490 million. $2,490 b. M2 equals M1 plus savings deposits including money market deposit accounts (MMDAs) plus small-denominated (less than $100,000) time deposits plus money market mutual funds (MMMFs) held by individuals: M2 = $2,490 + $140 + $100 + $400 = $3,130 million. $3,130

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