What connection does the underground economy have to the money supply?
A) The funds used in the underground economy are not part of M1 or M2.
B) The underground economy uses primarily checking accounts and debit cards for transactions.
C) The transactions of the underground economy are subject to more oversight than other transactions.
D) The underground economy often uses currency for its transactions.

Question

Quizplus · Accepted Answer

The underground economy often relies on cash transactions to avoid detection and regulation, which means these transactions are conducted using currency that is part of the money supply.

What Connection Does the Underground Economy Have to the Money