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Ahem... http://www.federalreserve.gov/otherfrb.htm http://www.federalreserve.gov/otherfrb.htm Cash is managed through the regional branches of the Federal Rese
by julespitt 13y ago
Ahem... http://www.federalreserve.gov/otherfrb.htm http://www.federalreserve.gov/otherfrb.htm
Cash is managed through the regional branches of the Federal Reserve, and while there are some boundaries on that map that don't line up, it mostly seems to be governed by these particular administrative regions.
As a New Yorker from Connecticut, the gigantic barrier between New York and New England would have to be nearly completely explained by the Fed.
- zaptheimpaler 13y agoWheresgeorge tracks members bills though, those would mostly be carried by people going from one state to the other, not through Federal Reserve branches right?
- Iterated 13y agoBanks take their cash and bring it to their regional Federal Reserve Bank for counting/cleaning/repair/replacement/etc. So pretty much any time a bill lands in a bank it has a good chance of getting sent back to the Fed. Since most places you pay cash at take it straight to the bank ASAP for security reasons, most of your cash ends up at a bank. In fact, I'm having a hard time thinking of a business other than maybe a hotdog stand that doesn't take 100% of their cash revenues to the bank.
- JumpCrisscross 13y agoOn the other hand, a marked bill is likely to be destroyed at replaced if it makes it to the Fed.
- zeckalpha 13y agoDo they send the cash to the cash's regional reserve, or to the bank's regional reserve?
- shpiel 13y agoBusinesses take cash to local bank branches, which then take the cash to closest Federal Reserve branch. Most large cities have Federal Reserve branches even if they are not heads of the regions.
- zachrose 13y agoBut WheresGeorge tracks $1 bills, which probably turn over in a business's cash register and get returned to random people as change more often than they go back to the bank.
- hollerith 13y agoI don't understand. How do the 12 Federal Reserve Banks determine the flow of dollar bills?
- bcoates 13y agohttp://www.frbservices.org/help/coin_and_currency.html#a1 http://www.frbservices.org/help/coin_and_currency.html#a1 Businesses that collect large numbers of dollar bills bundle them up and give them to their banks, these wind up in the hands of the local federal reserve that checks them and delivers them to businesses that give out large numbers of dollar bills inside of the same district.
- Iterated 13y agoBanks return their bills to their regional Fed bank for counting/cleaning/exchange/destruction/etc. So if you're from Dallas and you spend a dollar in Northern Louisiana that dollar is probably going to end up back in Dallas because Northern Louisiana is in the Dallas Fed's district.
- Iterated 13y agoCame here to say this. It seems like a lot of the lines are due to the locations of the Federal Reserve Banks. I would also like to note that there are branches of FRBs in Denver, Seattle, Salt Lake City, and Miami, as well as many others, but the ones I mentioned are ones that I find geographically separated from their main regional bank. If you look, even these larger branches of the FRB's seem to be centered in these regions as well. I don't think some of the smaller FRB branches (like El Paso, or San Antonio) have cash services departments (I could be wrong here), but the larger ones do. To expand on julespitt's comment: Each FRB (and whichever branches of each FRB has a cash department) gets money sent in from banks to be exchanged/counted/cleaned/recirculated/stored/whatever in whichever bank is closest. This explains a majority of these lines. This probably also explains why there's some really defined lines around Seattle, Denver, and Salt Lake City. Even though they are branches of FRB's, they still have cash departments.