U.S. Consumers’ Holdings and Use of $100 Bills

Federal Reserve Bank of Boston Research Paper Series Research Data Reports No. 14-3

26 Pages Posted: 14 Feb 2015

See all articles by Claire Greene

Claire Greene

Federal Reserve Banks - Federal Reserve Bank of Boston

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Date Written: November 25, 2014

Abstract

Conventional wisdom asserts that $100 bills are often associated with crime and foreign cash holdings, leading some commentators to call for their elimination; in light of this view, it is useful to examine the legal, domestic use of cash. This report uses new data from the 2012 Diary of Consumer Payment Choice (DCPC) to evaluate consumer use of $100 bills as a means of payment. On a typical day in the United States, 5.2 percent of consumers have a $100 bill in their pocket, purse, or wallet. But only 22 percent of U.S. consumers have at least $100 in their wallet, pocket, or purse. Of these cash-intensive consumers, the main association with holding a $100 bill is the amount of cash carried. A consumer who carries $400 to $699 has a 64 percent probability of carrying at least one $100 bill.

Keywords: money demand, currency denominations, $100 bill, Diary of Consumer Payment Choice

JEL Classification: D14, E41

Suggested Citation

Greene, Claire and Schuh, Scott, U.S. Consumers’ Holdings and Use of $100 Bills (November 25, 2014). Federal Reserve Bank of Boston Research Paper Series Research Data Reports No. 14-3. Available at SSRN: https://ssrn.com/abstract=2564138 or http://dx.doi.org/10.2139/ssrn.2564138

Claire Greene

Federal Reserve Banks - Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

Scott Schuh (Contact Author)

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Ave.
Boston, MA 02210
United States
617-973-3941 (Phone)
617-619-7541 (Fax)

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