The formula for falling in gravity from rest is
D = (1/2) (g) (t)²
Distance = (1/2) (gravity) (falling time)²
Solve this for time, and you find that
Time = √(2·distance/gravity)
For this problem, distance = 16 cm, and gravity on Earth always = 9.8 m/s².
Write those numbers in, and we get
Time = √(32 cm) / (9.8 m/s²)
time = √(0.32 / 9.8) (s²)
time = 0.18 second
The whole dollar bill falls through the catcher's fingers before he can pinch. THAT's why a person can't react fast enough to catch the falling bill.