Facts and Myths About Cash: Test Your Knowledge

Cash Quiz Image

Can you separate cash facts from common myths? See how much you really know about cash with this seven-question quiz.

1. Demand for U.S. currency is growing.

  • True
  • False

Demand for U.S. currency has grown steadily since the 1980s.

As of March 2016, U.S. currency in circulation surpassed 38 billion notes valued at $1.4 trillion. Since 2011, the value of currency in circulation has grown an average 8 percent per year, and even low value denominations, $1 and $5 notes, have grown an average 6 percent.

Demand for U.S. currency has grown steadily since the 1980s.

As of March 2016, U.S. currency in circulation surpassed 38 billion notes valued at $1.4 trillion. Since 2011, the value of currency in circulation has grown an average 8 percent per year, and even low value denominations, $1 and $5 notes, have grown an average 6 percent.

2. Consumers use credit cards for most small-value purchases.

  • True
  • False

The average consumer uses cash for about two-thirds of purchases under $10.

Consumers make a lot of small purchases and typically pay for them with cash, which makes cash the most frequently used payment option.

The average consumer uses cash for about two-thirds of purchases under $10.

Consumers make a lot of small purchases and typically pay for them with cash, which makes cash the most frequently used payment option.

3. Most people carry cash.

  • True
  • False

According to our research, 89 percent of Americans carry some cash on a regular basis, either sometimes or always.

People carry cash for a number of reasons. In addition to making purchases, some people carry cash in case of emergencies or if electronic payment options are not accepted.

According to our research, 89 percent of Americans carry some cash on a regular basis, either sometimes or always.

People carry cash for a number of reasons. In addition to making purchases, some people carry cash in case of emergencies or if electronic payment options are not accepted.

4. The average consumer carries less than $10 in cash.

  • True
  • False

The average consumer carries slightly more than $20 in cash.

Many people carry cash even if they prefer to pay with credit or debit cards. Based on our research, “just-in-case cash holders” carry, on average, about $73 per day, even so most of them prefer to pay with cards.

The average consumer carries slightly more than $20 in cash.

Many people carry cash even if they prefer to pay with credit or debit cards. Based on our research, “just-in-case cash holders” carry, on average, about $73 per day, even so most of them prefer to pay with cards.

5. Most shopping takes place in stores, not online.

  • True
  • False

More than 90 percent of purchases are made in person.

And the majority of those purchases take place at retail stores, vending machines, and gas stations, where cash is the most popular way to pay.

More than 90 percent of purchases are made in person.

And the majority of those purchases take place at retail stores, vending machines, and gas stations, where cash is the most popular way to pay.

6. Ride-sharing apps have a big impact on cash use.

  • True
  • False

So far, ride-sharing apps’ impact on cash has been small.

Transportation services, such as taxis or buses, make up a very small part of total cash spending in the U.S. (around 2.2 percent). Even if more than half of all transportation services convert to ride-sharing apps, total cash transactions would decline by a mere 1.4 percent.

So far, ride-sharing apps’ impact on cash has been small.

Transportation services, such as taxis or buses, make up a very small part of total cash spending in the U.S. (around 2.2 percent). Even if more than half of all transportation services convert to ride-sharing apps, total cash transactions would decline by a mere 1.4 percent.

7. For person-to-person money transfers, millennials mostly use cash.

  • True
  • False

The majority of person-to-person money transfers between millennials are made with cash.

Today, we have a variety of options to exchange money with each other, including mobile apps like Venmo. Despite these options, millennials mostly use cash to pay back a debt or give a monetary gift.

The majority of person-to-person money transfers between millennials are made with cash.

Today, we have a variety of options to exchange money with each other, including mobile apps like Venmo. Despite these options, millennials mostly use cash to pay back a debt or give a monetary gift.