The amount of currency in the hands of the public is approximately what percentage of M1?
A) 45%
B) 25%
C) 30%
D) 90%

Question

Quizplus · Accepted Answer

Currency in the hands of the public includes paper money and coins. M1 includes currency in circulation plus checking deposits, traveler's checks, and other demand deposits. The percentage of currency in the hands of the public is approximately 45% of M1, according to the Federal Reserve. Therefore, option A is correct.

The Amount of Currency in the Hands of the Public