Currency

NOUN (3)

1. the metal or paper medium of exchange that is presently used;

general acceptance or use;

belonging to the present time;

coins

United States Mint (1792)
under US Department of the Treasury
- Philadelphia, PA
- Denver, CO

bills
(aka banknotes)

Bureau of Engraving and Printing (BEP, 1862)
under US Department of the Treasury
- Fort Worth, TX

How do coins and bills enter circulation?

Mint or BEP -> Central bank (CB)
- Coins and Bills are ordered and purchased by the central bank (CB).
  - Payment by: CB credits the government's account
Central bank -> Commercial banks
- Commercial banks buy coins and bills needed for their daily operations.
  - Payment by:
    
    exchanging worn-out bills/coins
    
    for additional amounts, CB debits the bank's account
Commercial banks -> individuals and non-bank businesses
- We purchase coins and bills from our bank.
  - Payment by:
    
    we withdraw some of our account balance, or
    
    we exchange other cash