Does that actually happen in real life? Is money ever destroyed? Why isn't it distributed amongst the poor?|||yes it really is destroyed after a period of time and or if damaged (countys mint makes that call) what your thinking of is good in theory but if it were frewely circulated arround carelessly inflation cost would jump ( IE Germany Pre world war II where a wheel barrow of cash could get you a loaf of bread) the value of money is guaranteed against an acce[ted amount of gold so for the more cash floating arroud the lesser its value.|||Old money is taken out of circulation and replaced by newly printed money. It is an exchange not just destruction.|||They burn the old bills as they print the new ones, it's just a replacement of product.|||Bills are taken out of circulation all the time, as they wear out and as new bills are printed. If money was never taken out of circulation, the value would go down as new bills are put into circulation.|||Money is destroyed because it is too warn out. This happens routinely every day at the Federal Reserve.
It is replaced with new money in the same amount, in the same way that all new money is placed in the system.|||Yes it does. But security is very, very tight, and really doubt anyone would be able to get out the door with any of the money to be destroyed. You can bet they have every inch of the place (maybe not the bathrooms, but you never know!) covered by at least 3 cameras.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment