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.