How does the government put cash money into circulation?

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So I had a passing thought about how much cash money is printed every year and looked it up (varies but $267 billion in 2022) and my question is after all this cash is printed, how is it actually put into circulation by the govt to eventually end up in my hands?

In: Economics

2 Answers

Anonymous 0 Comments

Government pays people to do work. Those people buy goods/services from civilians.

Those civilians then use that money.

Anonymous 0 Comments

Answer: It’s distributed by banks, who get it from the Federal Reserve. Most of a bank’s money is just a number in their books, but when they need more cash to distribute to customers who want it, they buy the cash from the Federal Reserve, and it gets physically delivered in armored trucks. Banks also collect older, damaged currency and return it to the Federal Reserve to be destroyed.