where does the government keep their trillions of dollars?

Question

Does the US keep trillions in cash in a bank?

In: Economics

Answer 1

Yes. The government’s bank is the Federal Reserve, which is also a part of the government. When the Treasury spends money, it writes and check like any other business. The receiving bank then settles the check with the Federal Reserve Bank to transfer the funds. Interestingly, that bank might also have an account with the Federal Reserve the various legal and logistical reasons.