Question

WC logic Ulu Cd. 4. The U.S. population is approximately 300 million. Using the information in Table 2.1, calculate the average amount of U.S.currency per citizen. Do most Americans hold that much cash? If not, where is it? the ratio of 1 GDP. These people hold economy. Pld Have the rat or fallen? W

Answer 1

From the given table, we obtain

Currency = $882.0 billion

The population of the U.S. = 300 million

The average amount of the U.S. currency per citizen = Currency/Population = $882.0 billion/300 million = $882,000 million/300 million = $2,940 per citizen

Most Americans do not hold the entire amount as per the above calculation in cash. A large portion of the above currency is deposited in the banks, while the actual currency holding per citizen might be very less based on the transaction and speculative demand for money.