How Money Moves: The many Paths of Currency
All currency is part of an intricate cycle that involves federal agencies, banks, consumers, and businesses. However, depending on the type of currency, the time it spends in this cycle may vary. For instance, dollar bills have a life expectancy of about six years while five-dollar bills have a life expectancy of about five years. Over this time, bills can pass hands an astonishing 55 times each year and travel many miles before being taken out of circulation.
But what about electronic money? These days, many of our financial transactions don't involve the movement of physical cash or coins, but the slight numerical adjustments of bank accounts. Think about what happens when you pay for items with your debit card or receive a paycheck that is directly deposited into your bank account. Although still considered currency, these electronic money transactions can be difficult to visualize as part of the currency cycle, especially when you consider the rise in electronic money transfers. After all, learning how to send money online is so easy, anyone can do it!
But rest assured, whether you use currency in physical or electronic form, you're a part of the currency cycle. If you'd like to learn more about how your money moves, take a look at this awesome infographic.