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Copper Catcher
Administrator
USA
2092 Posts |
 Posted - 04/30/2010 : 12:26:57
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There is about $829 billion dollars of U.S. currency in circulation; the majority is held outside the United States. (As of June 2008)
The Federal Reserve Banks distribute new currency for the U.S. Treasury Department, which prints it.
Depository institutions buy currency from Federal Reserve Banks when they need it to meet customer demand, and they deposit cash at the Fed when they have more than they need to meet customer demand.
When a Federal Reserve Bank receives a cash deposit from a bank, it checks the individual notes to determine whether they are fit for future circulation. About one-third of the notes that the Fed receives are not fit, and the Fed destroys them. As shown in the table below, the life of a note varies according to its denomination. For example, a $1 bill, which gets the greatest use, remains in circulation an average of 21 months; a $100 bill lasts about 7.4 years.
Denomination of Bill - Life Expectancy (Years)
$1 1.8
$5 1.3
$10 1.5
$20 2
$50 4.6
$100 7.4
The Federal Reserve orders new currency from the Bureau of Engraving and Printing, which produces the appropriate denominations and ships them directly to the Reserve Banks. Each note costs about four cents to produce, though the cost varies slightly by denomination.
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US Currency in Circulation
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