2006-11-20 10:06:51 · 6 answers · asked by lulu 2 in Social Science ➔ Economics
dont know
2006-11-20 10:08:52 · answer #1 · answered by babygirl 1 · 0⤊ 0⤋
I'm not sure if you're asking about the creation of MONEY or the creation of CURRENCY. They are not the same thing, although we use currency to make money tangible.
There is an involved process by which money (not currency) is actually created. See the wiki link below. In summary, money in the modern world is created in the "fractional reserve banking system" when one person's deposit in a bank is lent out to someone else as a loan (at which point both people now possess money, where before only one person did).
2006-11-20 19:09:36 · answer #2 · answered by KevinStud99 6 · 0⤊ 0⤋
Money comes from many US mints spread out primarily on the Eastern half of the US. As for how much is in circulation, I am guessing they try to make more money to combat inflation, but unpredictable incidents such as losing money down drains, etc. may cancel out some of the daily production
2006-11-20 18:10:40 · answer #3 · answered by rjb0620 2 · 0⤊ 0⤋
the FED is the organization that controls the amount of money in circulation. they try to control inflation, and they mess with interest rates
2006-11-20 18:16:48 · answer #4 · answered by ajflkajfsalkfsalkfna 3 · 0⤊ 0⤋
I don't think so, because sometimes "money" is defined to include stuff like savings deposits and checking account deposits (as opposed to just gold coins buried in the back yard). A bank could loan Person A's money to Person B, and its "counted" as money twice.
2006-11-20 18:45:25 · answer #5 · answered by wallstream 2 · 0⤊ 1⤋
in economics M0
http://en.wikipedia.org/wiki/Money_supply#United_States_Money_Supply
674,000,000,000 US currency in circulation in 1994
2006-11-20 18:19:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋