When new money is printed, how is it distributed into circulation?
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It’s sent to banks when they order more cash. outdated, damaged, and compromised currency is sent back to the treasury to be shredded and recycled where possibly. A lot of countries use plastics in their currency now which I believe gets destroyed. United States currency is made of cotton so it can be recycled.
Banks have the power of converting cashless money to cash. A bank can exchange cashless money for cash at the Central Bank of a country (Federal Reserve in the US).
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