Eli5: sincerely just out of curiosity, if a bank robber is caught after a dye pack explodes and the money is returned, what do they do with the money? Is it cleaned or do they throw it away?

Question

Edit: thank you for all your helpful responses! My curiosity is sated!

In: Economics

Answer 1

The Federal reserve will replace any damaged bills 1:1

The damaged bills are subsequently destroyed/shredded to prevent there circulation.

The bank in turn ends up with the same amount of money they started with