ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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shred it
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replace it
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throw it away
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None of the above
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Detailed explanation-1: -Its spokesperson, Benjamin Gold, tells Central Banking that, according to 2021 figures for the Federal Reserve System, “46% of shred was turned into eco-friendly power, 38% into compost, and 15% into insulation and road surfaces”.
Detailed explanation-2: -Bent or partial coin is not redeemable at face value; it is redeemable only at its bullion (metal) value as established by the Director of the U.S. Mint. The Federal Reserve DOES NOT accept deposits of bent or partial coin. Bent or partial coin must be sent to the U.S.
Detailed explanation-3: -If a bill is counterfeit, it is sent to the Secret Service. But if it’s merely unfit by the Fed’s standards, then the machine shreds it. Those shredded notes are sent to landfills or packaged and provided as souvenirs to the public on Federal Reserve Bank tours.
Detailed explanation-4: -The Federal Reserve Bank will then store the damaged bills for destruction. When enough old bills have been collected, the Federal Reserve Banks will shred them.
Detailed explanation-5: -Even if cash is smelly or dirty, banks give their customers credit for the deposit, said Garrett Francis, the Boston Fed’s director of Cash Services. The money is double-bagged, and the bank notifies the Fed that the deposit will be sent for special handling.