Quantity of currency notes. How Governments determine this?

Question

Quantity of currency notes. How Governments determine this?

Answer 1

Actual currency notes make up only a small percentage of the money in an economic system.  Here in the US, if everyone wanted to pull all of their money out of the bank and hold phisical dollars there would not be enough of them.  They require banks to hold a specific percentage of the money in notes just in case people want it, and supply them with new notes accordinly.