Assume that the following asset values (in millions of dollars) exist in Ironmania:


Instructions: Enter your answers as a whole number.
What is M1 in Ironmania?
$ million
What is M2 in Ironmania?
$ million

1 answer

To calculate M1 and M2 in Ironmania, we typically need specific values for various components of the money supply. Here's a brief overview of what M1 and M2 generally include:

  • M1: This includes the most liquid forms of money, such as:

    • Currency (coins and paper money)
    • Demand deposits (checking accounts)
    • Traveler's checks
    • Other checkable deposits
  • M2: This includes all of M1 plus slightly less liquid forms of money, such as:

    • Savings accounts
    • Time deposits (such as certificates of deposit under $100,000)
    • Money market accounts
    • Various other near-money assets

If you provide the specific values for each of these categories in Ironmania, I can help you calculate M1 and M2. Please supply the relevant amounts, and I will calculate the totals for you.