As of 2010 the Outstanding U

question 77

Multiple Choice

As of 2010 the outstanding U.S. currency is $872 billion, which implies that the typical U.S. citizen holds $2,800 in cash. Is this an accurate inference? Why?

• A) Yes; because dividing total currency of $872 billion by total U.S. population in 2010 roughly works out to $2,800 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 $2800 in her checking account to back up all that cash
• D) Yes; because the Fed rarely makes accounting mistakes when computing M1
• E) none of the above

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Definitions:

Social Traps

Situations in which a group or individual acts in a way that is beneficial in the short term but detrimental in the long term, often due to a failure to consider the wider consequences.

Intrinsically Rewarding

Valuable or fulfilling in itself, without requiring external reward or recognition.

Altruism

The behavior and attitude of selflessly caring for the well-being of others, often at a personal cost.

Windfall Bonus

An unexpected gain or profit, often a large sum of money received unexpectedly.