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The Federal Reserve Board's Role As the issuing authority for all Federal Reserve notes, the Board of Governors of the Federal Reserve System has a wide range of responsibilities related to paper money, from ensuring an adequate supply to protecting and maintaining confidence in our currency.

Coins come from the U.S. Mint, and paper currency comes from the U.S. Treasury's Bureau of Engraving and Printing. The Fed distributes currency after it's printed.

Economics is based on the idea of supply and demand. If we printed more money, there would be an artificial overabundance of demand ? money ? but the supply of goods would not increase at the same rate. What results is dangerous inflation. Prices would increase to a level where the newfound money would be worthless.

The Bureau of Engraving and Printing produces United States currency notes, operates as the nation's central bank, and serves to ensure that adequate amounts of currency and coin are in circulation.

The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury and is led by the Comptroller of the Currency.

The Federal Reserve Board issues the nation's currency in the form of Federal Reserve notes to the Federal Reserve Banks, which, in turn, distribute currency to the public through approximately 8,500 banks, savings and loans, and credit unions.

Each of the 12 Federal Reserve Banks serves its geographic district in various ways, including, but not limited to, distributing paper currency and coins, processing automated electronic payments and monitoring commercial banks to ensure compliance with regulations and banking practices.