How can the US.budget have a size of 4 trillion dollars if the total value of all dollar bills is only 1.75 trillion?
- QuentinLv 71 month agoFavorite Answer
The majority of money is not cash. It is credit cards or bank transfers for large amounts. No actual money is needed for most purchases.
The only thing limiting how much banks can lend out is the fear of defaults.
- 7FlightsupLv 61 month ago
Why can't it?
- Elaine MLv 71 month ago
Welcome to economics.
- hoarsemanLv 71 month ago
The amount of cash you need to spend /circulate each month is no where near your entire wealth .
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- Anonymous1 month ago
The vast, vast majority of money is digital.