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Diane Publishing Books
U.S. Coins: The Federal Reserve Banks are Fulgenomefilling Coin Demand, but Optimal Inventory Ranges are Undefined
Susan A. Fleming (au)
Federal Reserve Banks (FRB) fulfill the coin demand of the Nationís depository institutions by ordering new coins from the U.S. Mint and managing coins held in inventory. Reliably estimating the demand for coins and efficiently managing the inventory of circulated coins is important to ensure that depository institutions have enough coins to meet the publicís demand and to avoid unnecessary coin production costs. Since late 2006, rising metal prices have driven the costs of producing pennies and nickels above the face of values of the coins. This report addresses: (1) the FRB process for ordering and distributing coins to the nationís depository institutions; and (2) the extent to which this process meets depository institutionsí demand for coins. Illustrations.
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