When a User account is created (either manually through the Control Panel, or as a result of Visitor Registration or Member Registration), their password will automatically be sent to the e-mail address specified for that User's account.
If you are an Administrator or Manager, you can also reset any User's password by clicking on the button labeled [Reset & Send Password] with a User's account.
Also, if a User can remember their password by viewing their Password Hint, then they will have the option of not requesting their password to be reset and e-mailed to them. Since this feature may be a potential security risk for the User's account, it must be enabled in Site Settings, and the User has to have entered a Password Hint the last time they changed their password.
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