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- Assume that the following asset values (in millions of dollars) exist in Ironmania: 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 = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40.
Hints: Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. 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.
Part 1:What is M1 in Ironmania?
Part 2: What is M2 in Ironmania?
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- Assume that the following asset values (in millions of dollars) exist in Ironmania: 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 = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40. Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. 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. 1.1 What is M1 in Ironmania? 1.2. What is M2 in Ironmania?Assume that the following asset values (in millions of dollars) exist in Ironmania: 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 = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40. Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. 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. 1.1. What is M1 in Ironmania? Show your computation. 1.2. What is M2 in Ironmania? Show your computation.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?
- Question 1 Assume that the following asset values (in millions of dollars) exist in Ironmania: 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 = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40. Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. 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 What is M1 in Ironmania? What is M2 in Ironmania? The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into…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? millionquestion 1. this question has two parts; 1a and 1b. Assume that the following asset values (in millions of dollars) exist in Ironmania: 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 = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40. (Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. 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.) 1a. What is M1 in Ironmania? Show your computation. 1b. What is M2 in Ironmania? Show your computation.
- 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? $ millionAssume 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 M in Ironmania? million b. What is M2 in Ironmania? million %24Which two of the following financial insitituions offer checkable deposits included within the M1 money supply : mutual fund companies ; insurance companies ; commercial banks ; securities firms; thrift instituions ? which of the following is not included in either M1 OR M2: currently held by the public; checkable deposits money market mutual fund balances ; small - denominated (less than $100,000) time deposits ; currency held by banks ; savings deposits?
- One of the major functions of commercial banks is credit creation. Commercial banks create credit by advancing loans and purchasing securities. They lend money to individuals and businesses out of deposits accepted from the public. Commercial banks have to maintain a specified percentage of their deposits as liquidity which is set by the central bank. This reserve requirement controls the extent to which commercial banks can grow money in the economy. Assuming you only have one commercial bank in your economy, a reserve requirement of 20% and an initial deposit of 200. REQUIRED: A. Show for the first four days and the last day the balance sheet of your commercial bank.Table 1 shows the financial position of Bank Uno once $3381.00 has been deposited. Assume that the required reserve ratio is 9.00%, that banks do not keep excess reserves, and that all the money loaned out from Bank Uno is deposited into Bank Duo (whose loans go to other banks not shown here). Once the lending and depositing process is complete, what will the accounts look like in Tables 2 and 3? Specify all answers to two decimal places. Table 1. Bank Uno's Initial T-Account Assets Liabilities Reserves: $3381.00 Deposits: $3381.00 Table 2. Bank Uno's T-Account After Loans Assets Liabilities Reserves: ? Deposits: ? Loans: ? Table 3. Bank Duo's T-Account After Deposits and Loans Assets Liabilities Reserves: ? Deposits: ? Loans: ? What are Bank Uno's deposits in Table 2? $ What are Bank Uno's reserves in Table 2? $ What are Bank Duo's loans in Table 3? $ What are Bank Uno's loans in Table 2? $What is the maximum impact on the money supply from the bond liquidation in the previous problem(Use positive or negative to show growth or contraction)? Required Reserve Ratio=20% Assets Liabilities Total Reserves=$50 Demand Deposits=$100 Loans=$20 Bonds=$30
