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consider the following statement: money is whatever society says it is consider

ID: 1151966 • Letter: C

Question

consider the following statement: money is whatever society says it is consider the following statement: money is whatever society says it is consider the following statement: money is whatever society says it is Assume that the following asset values (in millions of dollars) exist in Ironmani: Value Federal Reserve notes in circulation Money market mubual funds (MMMFs) held by individuals Gorporate bonds Iron ore deposits Currency in commercial banks Savings deposits, including money market deposit accounts (MMDAs) Checkable deposits Small denominated (less than $100,000) time deposis Coins in ciroulation 700 400 300 50 120 140 1,700 100 40 Instructions: Enter your answers as whole numbers. a. What is M1 in Ironmania?

Explanation / Answer

a.

M1 in Ironmania

=Federal Reserve Notes in circulation+Checkable deposits+Coins in circulation

=700+1700+40

=2440

M2 in Ironmania

=M1+Savings deposits, including money market deposit accounts (MMDAs)+Money market mutual funds (MMMFs) held by individuals +Small-denominated (less than $100,000) time deposits

=2440+140+400+100

=3080

the above is answer..