The supply of "cash" (paper and coin) is produced by the U.S. Mint and the Bureau of Engraving, but the _________________ controls the distribution of the money to financial institutions..

The Federal Reserve (FED) distributes new currency through its 12 Federal Reserve Banks. Depository institutions (e.g. savings bank, commercial bank, savings and loan association, or credit union) buy currency from the Federal Reserve Banks when they need extra cash and they deposit cash when they have too much cash.

Answer Link

majocgonzalez majocgonzalez · Answer 2 · 2020-01-04T20:47:21+01:00

Answer:

Federal Reserve

Explanation:

The Federal Reserve is the United States central bank and it has different responsabilities like managing the monetary policy of the country, guarantee the stability of the financial system, supervise financial institutions and provide financial services. The Federal Rserve takes care of providing money to banks and it stores currency and making loans for these institutions to be able to meet the reserve requirements. According to this, the answer is that the Federal Reserve controls the distribution of the money to financial institutions.