Small denominations play a special role in a payments ecosystembecause they facilitate exchange for small-value goods and services. Thisreport examines the $1 bill holdings of adults in the United States using datafrom the Diary of Consumer Payments Choice (DCPC). Simply knowing the number of$1 bills in circulation is not useful for understanding consumers’ actions,since many of these bills are held by merchants. The costs and benefits to theconsumer of carrying $1 bills have been largely ignored in the policydiscussion of the costs of switching from dollar notes to dollar coins. Knowingthe facts about U.S. adult consumers’ holdings of $1 bills represents a firststep toward gaining an understanding of these costs and benefits to consumers.
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