Money seems to be disappearing. The value of homes has gone down and the banks are in huge amounts of debt and have to be bailed out by the government. But where has all of the money gone?
Money consists of two main elements.
The first is cash (notes and coins). The total amount of cash in the UK is just over £50bn, with about £43bn circulating outside the banks and £7bn in banks’ safes, tills and cash machines.
But cash is a relatively small proportion of the total amount of money. So what is the rest?
Read More: Where has all the money gone? John Sloman