How does the government actually take in and spend money?

Question

Is there just some big bank account, and do they just write a check/ is there some sort of government wire transfer system? Every time I hear something like “US approves $55 million in spending” how do they actually spend it? Where does that money come from and who gets it?

In: Economics

Answer 1

The federal government’s “Bank Account” is at the federal reserve. All revenues go into that account and all spending comes out of there. The federal reserve is also the agency that sells government debt whenever there isn’t enough money in the account, which is always.