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 79 months agoFavourite 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 69 months ago
Why can't it?
- Elaine MLv 79 months ago
Welcome to economics.
- hoarsemanLv 79 months ago
The amount of cash you need to spend /circulate each month is no where near your entire wealth .
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- Anonymous9 months ago
The vast, vast majority of money is digital.