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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