Question
ccording to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults
ccording to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this?
| a. | If they included children in the population count, it would be correct. | |
| b. | This shows that the Fed has no idea how much cash is really in circulation. | |
| c. | The answer is cryptocurrency, which bumps up the amount of cash in the money supply. | |
| d. | People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average. |
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740460, 978-1119740469
