where does the government keep their trillions of dollars?

Question

Does the US keep trillions in cash in a bank?

In: Economics

Answer 1

No, the government increases and decreases money supply using the Fed. It can buy treasuries, which puts money into the system. It can decrease bank reserve requirements, which increases money availability banks can use to loan out. Also Lowering rates makes it cheaper to borrow.

It should be noted, it’s not physical money.