Download presentation
Presentation is loading. Please wait.
Published byPhillip Fowler Modified over 9 years ago
1
The Circulation of Currency
2
Fun Facts There is about $820 billion dollars of US currency in circulation. The majority of money held is OUTSIDE the US.
3
Basics Cash on hand vs. total amount of money
4
Meeting the Variable Demand for Cash Amount of cash the public ‘physically’ holds varies by: ▫Season ▫Day of the month ▫Day of the week Banks meet customer cash demands by getting cash from the Federal Reserve Banks. ▫12 Regional Banks
5
Maintaining a Cash Inventory Each of the 12 Reserve Banks is responsible for having enough cash readily available for their district. Supply comes from: ▫Bureau of Engraving and Printing ▫United States Mint
6
Fit For Future? When a Fed Bank receives cash, it checks the notes to determine whether they are fit for future circulation. ▫1/3 are not fit and are destroyed ▫50% rule Denomination of Bill Life Expectancy (Years) $11.8 $51.3 $101.5 $202 $504.6 $1007.4
7
Securing US Currency 1996 the Treasury began issuing a series of new notes with modified features. ▫March 1996- $100 ▫October 1997- $50 ▫September 1998- $20 ▫May 2000- $10 and $5 The same issuing occurred again beginning in 2003. ▫Notes included subtle background colors of blue, peach, and green.
8
Putting Coins Into Circulation Mint produces coins from 3 sites: ▫Philadelphia ▫San Francisco ▫Denver Coins are cheaper than bills. When the general public was asked their opinions on replacing dollar bills entirely, 79% said they would oppose such a move. Even when told that replacing bills with coins would save the government $500 million a year, 69% said they still opposed making such a change.
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.