According to a study from the Desjardins Credit Union, from Quebec, Canadians are holding more Money in physical form such as banknotes and coins. More than before. The value (or number of units) of the banknotes and coins in circulation within an economy. Cash in circulation is included in the M1 monetary aggregate and comprises only the banknotes and coins in circulation outside the Monetary Financial Institutions (MFI), as stated in the consolidated balance sheet of the MFIs, which means that the cash issued and held by the MFIs has been subtracted (“cash reserves”). Cash in circulation does not include the balance of the central bank’s own banknot... More represents 3.8% of GDP up from 3.3% in 2008.
The study also suggests Canada should phase out the five Fraction of a currency representing the hundredth of the unit of account. More A coin is a small, flat, round piece of metal alloy (or combination of metals) used primarily as legal tender. Issued by government, they are standardised in weight and composition and are produced at ‘mints’. More within five years as its purchasing power declines due to inflation. As a consequence, the quarter should also be dropped in favour of a new mix of denominations with 10, 20 and 50 cent coins. The study does not recommend switching the five-dollar bill to a coin.
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