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Ironmania Case Analysis

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Ironmania Case Analysis
CH. 14 HOME-WORK ASSIGNMENT; DUE ON 11/22

1. Use the figures in the table below to answer the following questions. | Billions | Small time depositsMoney-market mutual funds held by businessesSavings deposits, including money-market deposit accountsMoney-market mutual funds held by individualsCheckable deposits Currency | $1250 1300 1620 905 836 325 |

(a) What is the value of M1? 836 + 325 = $1161 billion (b) What is the value of M2?
1161 + 1620 + 1250 + 905 = $4936 billion

2. Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve Notes or Bills 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.

a. What is M1 in Ironmania?
b. What is M2 in Ironmania?

3. Assume that Jimmy Cash has $2000 in his checking account at Folsom Bank and uses his checking account card to withdraw $200 of cash from the bank’s ATM …show more content…
President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis. Tarp was founded by congress. On September 19, 2008, Treasury Secretary Henry M. Paulson Jr. proposed a sweeping bailout of financial institutions battered by bad mortgages and a loss of investor confidence. In Mr. Paulson's original proposal called the Troubled Asset Relief Program he asked Congress for $700 billion to use to buy up mortgage-backed securities whose value had dropped sharply or had become impossible to
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