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Federal reserve bank of boston

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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 personin 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?

Reference no: EM131449160

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