How do one dollar bills stay in the economy?

[ElDuque]

But the more important question is can you buy US lotto tickets with canadian dollars??

[Big Poppa Smurf]

direwolf,

you know how when you buy stuff with cash, and you get change back, and a lot of time there are singles in it? now think of all the stores that need those singles. ALL OF THEM NEED SINGLES, and they all get them from the bank.

[fuzzwonder]

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Money can be used to purchase goods and services.

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explain?

[DireWolf]

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direwolf,

you know how when you buy stuff with cash, and you get change back, and a lot of time there are singles in it? now think of all the stores that need those singles. ALL OF THEM NEED SINGLES, and they all get them from the bank.

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Uhhhh, why couldn't they have gotten them from other people?

I know what you are saying, but so far i have seen nothing to conclude that outgoing rates must be greater than incoming rates. Even if this is not occuring today, i still don't understand why it couldn't happen at some point,

[punkass]

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direwolf,

you know how when you buy stuff with cash, and you get change back, and a lot of time there are singles in it? now think of all the stores that need those singles. ALL OF THEM NEED SINGLES, and they all get them from the bank.

[/ QUOTE ]

Uhhhh, why couldn't they have gotten them from other people?

I know what you are saying, but so far i have seen nothing to conclude that outgoing rates must be greater than incoming rates. Even if this is not occuring today, i still don't understand why it couldn't happen at some point,

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[tuq]

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direwolf,

you know how when you buy stuff with cash, and you get change back, and a lot of time there are singles in it? now think of all the stores that need those singles. ALL OF THEM NEED SINGLES, and they all get them from the bank.

[/ QUOTE ]

Uhhhh, why couldn't they have gotten them from other people?

I know what you are saying, but so far i have seen nothing to conclude that outgoing rates must be greater than incoming rates. Even if this is not occuring today, i still don't understand why it couldn't happen at some point,

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[gusmahler]

I have no idea if OP is leveling us or what. But just because your uncle doesn't get ones from the bank doesn't mean the other businesses don't get ones from the bank.

When I was in high school, I worked retail. The manager would get a stash of bills and coins from the bank on Fridays (this was back before banks had longer weekend hours) to stack up for the weekend. If the store ran out of ones (which usually only happened on 3-day weekends, do you see why?), he would send someone to another store in the mall to get change.

[econophile]

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I know what you are saying, but so far i have seen nothing to conclude that outgoing rates must be greater than incoming rates. Even if this is not occuring today, i still don't understand why it couldn't happen at some point,

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there's no law that says that number of dollar bills being taken out of circulation (going into banks) has to exceed the number of dollar bills coming into circulation at any given time. but if the outflow exceeds the inflow for too long, there won't be enough dollar bills to carry out cash transactions, and then all retailers (even your uncle's dunkin donuts) will go to the bank to get more dollar bills.

[Big Poppa Smurf]

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direwolf,

you know how when you buy stuff with cash, and you get change back, and a lot of time there are singles in it? now think of all the stores that need those singles. ALL OF THEM NEED SINGLES, and they all get them from the bank.

[/ QUOTE ]

Uhhhh, why couldn't they have gotten them from other people?

I know what you are saying, but so far i have seen nothing to conclude that outgoing rates must be greater than incoming rates. Even if this is not occuring today, i still don't understand why it couldn't happen at some point,

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Dire,

I am going to go through the entire process with you. When you first open a store (like grand-opening of store here), you get all the cash you will need to make change from the bank. Each register has a standard amount of money that must be in it, say $200 or whatever. At the end of the day, any excess cash is taken out of the register, leaving enough to make change the next day. All this money gets "dropped" and picked up by a security truck.

This all goes to the bank. However cash also gets "deposited" to the store and stored in a vault, so when registers run out of cash, it can be replenished. Obviously since singles are given out a lot and rarely used to purchase many things, they need to be constantly refilled.

Now imagine that every single business in the world that handles cash does this. Cash goes out from the business, but it is also constantly coming in and thus singles are constantly in use. While there may be a net influx or outflux, since there is a constant use and demand for singles they never all accumulate at the bank.

[grando]

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Money can be exchanged for goods and services.

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