As of 2013,the outstanding U.S.currency is more than $1 trillion,which suggests that the typical U.S.citizen holds $3,600 in cash.Is this an accurate inference? Why?
A)Yes;because dividing total currency by total U.S.population roughly works out to $3,600 per person.
B)No;because criminals and foreigners hold large sums of dollars,so the average citizen holds far less.
C)No;because the average citizen probably does not have $3,600 in her checking account.
D)Yes;because the Fed rarely makes accounting mistakes when computing M1.
E)none of the above

Question

Quizplus · Accepted Answer

The inference is not accurate because the outstanding U.S. currency includes the cash held by criminals and foreigners, which means that the average citizen does not hold $3,600 in cash.

As of 2013,the Outstanding U