Which of the following statements is TRUE?
A) Coins constitute 90% of currency.
B) Paper money constitutes 90% of M1.
C) Paper money constitutes 90% of currency.
D) Coins constitute 90% of M1.

Question

Quizplus · Accepted Answer

According to the question, we need to determine the percentage of currency made up of coins and paper money. Since M1 includes currency as well as some other types of money, we can eliminate options A and D. Option B refers specifically to M1, which is not the same as currency. Therefore, the only true statement is that paper money constitutes 90% of currency, making option C the correct answer.

Which of the Following Statements Is TRUE