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Where does money go after it's made?

Updated: 9/15/2023
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15y ago

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Actually I think the question was related to how money is distributed. In the U.S., coins are made by the U.S. Mint and paper money by the Bureau of Engraving and Printing. The Federal Reserve system, which is the country's central bank, orders money from those two departments. Each district then conveys the money to banks which in turn make it available to businesses and individual customers.

This somewhat complicated method of distribution is part of the way in which the Federal Reserve system keeps control of the money supply. Of course they actually do much more by controlling interest rates, etc. as opposed to coins and bills, but it's all part of the tools the central bank uses to try to keep the economy on a relatively even course, the current crisis notwithstanding.

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