iv always wanted to know where does money come from and where does it go. does it get destroyed or something?

Question

i heard that money gets printed when someone works or when gold gets found . i dont really understand the whole thing please anser. dont tell me to go and study economics, just briefly anser.

Answer 1

money is made in a mint and is not destroyed but circulated around the country

Answer 2

Coins are minted in a number of Government mints, the largest being in Philadelphia. Paper money is printed in Government printing offices.
Coins are left in circulation forever. They either get lost or are kept in collections requiring the minting of more.
When paper money goes through banks worn items are taken out and sent back for replacement.

Answer 3

The paper and coin money that we use was originally intended to be a symbold to represent ownership of the gold in Fort Knox. Theoretically, you could trade in your dollars for their worth of gold. However, that is no longer the case.

Money is printed regularly and destroyed regularly. Otherwise we would have so many bills and coins floating around that each would be practically worthless (see Germany in the World War II era).

Answer 4

if you save money, you take money out of circulation, goverments like this as it reduces inflation, they raise interest rates to encourage this to happen.

I guess the opposite is true too , as the man said earlier with loans from banks - but they dont actually give you real notes. banks make demands on the treasury for new bills as they need them i gues.

they can print as much as they like but it also has an effect on the exchange rate with other countries,

this is really complicated, and i thought i had some input, but the more i think about it, the more i know i dont know. We need an economist to join this thread.

Answer 5

There are many mints around the country. If you look at your dollars, or coins, you will see letters on them. With the coins, all you get is a letter, such as D, for Denver, but, with the bills, they actually write out the name of the city. Check it out, sometime. There is a branch of government that dedicates itself to destroying money. It's called congress. Ha ha, just kidding. Money does get destroyed though, as it filters back through the government. They burn it.

Answer 6

I've heard that money grows in some rich men's gardens.

Here in the UK, money is also printed in a mint, and I think the value is dependent on the gold reserves or something like that.

Shola Ogunlokun
http://www.meet-britain.org.uk

Answer 7

the first 11 answers all dealt with the printing and minting processes.

money is created when banks make loans. that money is then put into circulation.

the more loans that are made, the more money is in circulation. as loans are repaid, the money supply is decreased. hence, if all the outstanding loans were paid in full, there would be no money in circulation. therefore, to keep a constant supply of money in circulation, Banks make more loans. money the treasure makes to banks does not put money into circulation, only when the banks themselves make the loans. savings and loans and credit unions are included in the word banks for this purpose as they are original lenders.

Answer 8

It comes from the US Mint and is destroyed by self-same organization.

They have been selling shredded money as insulation, as the cotton is a fabulous insulator and it gives people a chance to say that they have over $1M in the house (but it's little tiny bits blown into the walls)

Answer 9

There is only one place that prints money. The Bureau Of Ingraving and Printing in Washington DC. They are also the people who destroy old bills.

Answer 10

Money is printed and to keep the vaue the same it is destroyed at the same rate. There are "printers" all over the country, and I think all of it is desrtoyed in Washington, but I am not totally sure about that. :o)