Assume that the following asset values (in millions of dollars) exist in Ironmania: Category Value (Millions) Federal Reserve Notes in circulation $750 Money market mutual funds (MMMFS) held by individuals 400 Corporate bonds 300 Iron ore deposits 50 Currency in commercial banks 100 Savings deposits, including money market deposit accounts (MMDAS) 140 Checkable deposits 1,500 Small-denominated (less than $100,000) time deposits 100 Coins in circulation 40 Instructions: Enter your answers as a whole number. a. What is MI in Ironmania? $ million b. What is M2 in Ironmania? 2$ million

Assume that the following asset values (in millions of dollars) exist in Ironmania: Category Value (Millions) Federal Reserve Notes in circulation $750 Money market mutual funds (MMMFS) held by individuals 400 Corporate bonds 300 Iron ore deposits 50 Currency in commercial banks 100 Savings deposits, including money market deposit accounts (MMDAS) 140 Checkable deposits 1,500 Small-denominated (less than $100,000) time deposits 100 Coins in circulation 40 Instructions: Enter your answers as a whole number. a. What is MI in Ironmania? $ million b. What is M2 in Ironmania? 2$ million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Choose the correct answer
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a. What is M1 in Ironmania? $ million b. What is M2 in Ironmania? $ million
The Federal Open Market Committee (FOMC) is one branch of Federal Reserve System responsible for: Group of answer choices Approving discount rate Setting Federal Funds Rate Target Range Recommending Discount rate
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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 Iron ore deposits Currency in commercial banks Savings deposits, including money market deposit accounts (MMDAS) Checkable deposits Small-denominated (less than $100,000) time deposits 300 50 110 140 1600 100 Coins in circulation 40 a. What is M1 in Ironmania? $ million b. What is M2 in Ironmania? $ million
Assume the Required Reserve Ratio is 20% for all the banks. If the Federal Reserve sells $500,000 worth of US Treasury Bonds to the banking system (these three banks) who pay for the bonds with Reserves (Cash), what impact will this transaction have on the loan creating potential of the banking system?
Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve notes in circulation = $700; Money market mutual funds held by individuals = $400; Corporate bonds = $300; Iron ore deposits = $50; Currency in commercial banks = $100; Savings deposits, including money market deposit accounts = $140; Checkable deposits = $1,500; Small denominated (less than $100,000) time deposits = $100; Coins in circulation = $40. What is M1 in Ironmania? What is M2 in Ironmania?
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