.htaccess

I have read the Tutorial here at: http://www.kirupa.com/web/htaccess.htm

My question is: does the original file or folder still have to exist for the redirect to work?

e.g: Redirect /money http://www.mysite.com/english/money

Does the folder http://www.mysite.com/money/ have to exist?

I thought the advantages of this .htaccess Redirect command was to overcome changes in site design and movement or deletion of folders, but it appears not if the original location, folder, or file has to still exist … or is my web hosting faulty?