How can the amount of U.S. currency in circulation be so much higher than the amount held by the U.S. population?
Based on a Survey of Consumer Payment Choice, researchers from the Federal Reserve Bank of Boston estimated that the average consumer, 18 years of age and older, held about $340 in currency. However, there is actually about $4,000 of currency for every person in the United States. * How can the amount of U.S. currency in circulation be so much higher than the amount held by the U.S. population? * What does the difference in the above question imply about the measures of the money supply of the United States?
Content
Based on a Survey of Consumer Payment Choice, researchers from the Federal Reserve Bank of Boston estimated that the average consumer, 18 years of age and older, held about $340 in currency. However, there is actually about $4,000 of currency for every person in the United States.
* How can the amount of U.S. currency in circulation be so much higher than the amount held by the U.S. population?
* What does the difference in the above question imply about the measures of the money supply of the United States?
