DOCSLIB.ORG

Download the San Francisco Fed's Ten Questions About U.S. Currency

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Download the San Francisco Fed's Ten Questions About U.S. Currency FEDERAL RESERVE BANK OF SAN FRANCISCO Ten Questions about U.S. Currency Does the Federal Reserve print 1 money? No. The Bureau of Engraving and Printing, What’s the lifespan of a located in Washington D.C., and Fort Worth, 3 Federal Reserve note? Texas, prints money. Reserve Banks distribute it to the banking system, store it for depository institutions, and ensure enough is in circulation. 15 years 4 years 8 years What’s the most 4 years 2 common Federal 31% Reserve note in your 5 years wallet? The $1 bill. Dollar bills represent more than 31% of the more than $1.1 6 years trillion Federal Reserve 3% 7% notes in circulation. The $20 bill is most often used for spending and represents about 23% How many notes did of the total currency in Reserve Banks process circulation. The $100 4 and shred in 2012? 5% 23% bill is used as a store of value, is mostly held Reserve Banks processed 31.7 overseas, and represents billion notes (worth $581.4 about 26% of the total. billion) and shredded 4.6 billion notes (worth $105.5 billion). 4% 26% What’s the highest denomination Federal Reserve 5 note in circulation? Are Federal Reserve notes the only legal tender? Today, the $100 bill is the highest note 8 in circulation. Following the passage of Federal Reserve notes comprise more the Federal Reserve Act in 1913, Federal than 99 percent of all U.S. currency Reserve Banks began issuing Federal in circulation; the remainder includes Reserve notes in 1914 in denominations United States notes, national bank notes, ranging from $1 to $10,000. In 1969, and silver certificates, all of which notes greater than $100 were retired due remain legal tender. to declining demand. Why is U.S. currency green? 9 The term “greenback” was first What’s the highest denomination note given to 1861 Demand Notes 6 ever printed? because the backs of these notes The $100,000 Gold Certificate (Series 1934) is were printed with green ink. It the largest note printed (December 18, 1934 is believed that the green ink through January 9, 1935) by the Bureau of deterred counterfeiters who Engraving and Printing. Issued to Reserve Banks used photography as a means of only, against an equal amount of gold bullion reproduction. The early camera held by the U.S. Treasury, these notes were used saw everything in shades of black for transactions among Reserve Banks and not and white and, as a result, features printed in color lost their circulated publicly. individuality when reproduced photographically. With the introduction of Series 1928, the use of green was continued, most likely because of the strong tradition of using green color on U.S. currency, and the association has continued to the present day. What happens to counterfeit notes? 7 On July 5, 1865, the U.S. Secret Service was created within the U.S. Treasury with the sole Do women appear on U.S. mission of supressing counterfeit currency. 10 currency? Reserve Banks’ high-speed processing Martha Washington’s portrait appears machines identify suspect counterfeits as they on the 1886 $1 Silver Certificate. count currency deposits received from banks. Pocahontas, the only other historical Counterfeits are turned over to the U.S. Secret female on American currency, appears Service for investigation. Less than 1/100th of in the engraving “Introduction of the one percent of the value of all U.S. currency in Old World to the New Word,” which is circulation is reported as counterfeit. featured on several pieces of currency. .
Load more

Recommended publications
  • Monetary Policy in Economies with Little Or No Money
    NBER WORKING PAPER SERIES MONETARY POLICY IN ECONOMIES WITH LITTLE OR NO MONEY Bennett T. McCallum Working Paper 9838 http://www.nber.org/papers/w9838 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 July 2003 This paper was prepared for presentation at the December 16-17, 2002, meeting of the Hong Kong Economic Association. I am indebted to Marvin Goodfriend, Lok Sang Ho, Allan Meltzer, and Edward Nelson for helpful comments and suggestions. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research ©2003 by Bennett T. McCallum. All rights reserved. Short sections of text not to exceed two paragraphs, may be quoted without explicit permission provided that full credit including © notice, is given to the source. Monetary Policy in Economies with Little or No Money Bennett T. McCallum NBER Working Paper No. 9838 July 2003 JEL No. E3, E4, E5 ABSTRACT The paper's arguments include: (1) Medium-of-exchange money will not disappear in the foreseeable future, although the quantity of base money may continue to decline. (2) In economies with very little money (e.g., no currency but bank settlement balances at the central bank), monetary policy will be conducted much as at present by activist adjustment of overnight interest rates. Operating procedures will be different, however, with payment of interest on reserves likely to become the norm. (3) In economies without any money there can be no monetary policy. The relevant notion of a general price level concerns some index of prices in terms of a medium of account.
    [Show full text]
  • Pocahontas Alias Matoaka, and Her Descendants Through Her
    POC A H O N TAS S T O ALIA MA AKA, A N D H ER DESC EN DA NTS T H R OUGH H ER MARR IAGE AT am esto w n Vir inia in A ril 1 6 1 J , g , p , 4 , WITH OH N R OLFE GEN T LEMAN J , ; I N C LUDING TH E N AM‘ES O F ALFR IEN D E B E LE BE B L BOLL B , ARCH R , NT Y , RNARD , AND, ING, RANCH , B E LL LE I E I' "O O L ' V L CA , CAT TT , CARY, DANDR DG , D N , D UG AS , DU A , E L E E LLE E O IE L LE M GAY O DRIDG , TT , F RGUS N , F D , F ING , , GORD N, F S O I O B LEW LO M K GRI FIN , GRAY N , HARR S N , HU ARD , IS , GAN , AR H AM M E DE M C E M E O E RA N , A , RA , URRAY, PAG ], P YTHR SS , OL OBE O N K W ST ANA R D TAZEWELL D PH , R RTS , S IP ITH , , , W LK WE W A N D T S E LE O E . A , ST , HITT H R WIT H Biographical Sketch es N D O SO WY H AM R BERT N , AN ’D I L L U ST R AT IV E H IST OR I CA L N OT ES A B K . R . R O O D w . O G S J .
    [Show full text]
  • The Federal Reserve Act of 1913
    THE FEDERAL RESERVE ACT OF 1913 HISTORY AND DIGEST by V. GILMORE IDEN PUBLISHED BY THE NATIONAL BANK NEWS PHILADELPHIA Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Copyright, 1914 by Ccrtttiois Bator Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis History of Federal Reserve Act History N MONDAY, October 21, 1907, the Na­ O tional Bank of Commerce of New York City announced its refusal to clear for the Knickerbocker Trust Company of the same city. The trust company had deposits amounting to $62,000,000. The next day, following a run of three hours, the Knickerbocker Trust Company paid out $8,000,000 and then suspended. One immediate result was that banks, acting independently, held on tight to the cash they had in their vaults, and money went to a premium. Ac­ cording to the experts who investigated the situation, this panic was purely a bankers’ panic and due entirely to our system of banking, which bases the protection of the financial solidity of the country upon the individual reserves of banks. In the case of a stress, such as in 1907, the banks fail to act as a whole, their first consideration being the protec­ tion of their own reserves. PAGE 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis History of Federal Reserve Act The conditions surrounding previous panics were entirely different.
    [Show full text]
  • SURVIVING the CROSSING (Im)Migration, Ethnicity, and Gender in Willa Cather, Gertrude Stein, and Nella Larsen Jessica G.Rabin
    LITERARY CRITICISM AND CULTURAL THEORY Edited by William E.Cain Professor of English Wellesley College A ROUTLEDGE SERIES LITERARY CRITICISM AND CULTURAL THEORY WILLIAM E.CAIN, General Editor BEYOND THE SOUND BARRIER The Jazz Controversy in TwentiethCentury American Fiction Kristin K.Henson SEGREGATED MISCEGENATION On the Treatment of Racial Hybridity in the U.S. and Latin America Literary Traditions Carlos Hiraldo DEATH, MEN, AND MODERNISM Trauma and Narrative in British Fiction from Hardy to Woolf Ariela Freedman THE SELF IN THE CELL Narrating the Victorian Prisoner Sean Grass REGENERATING THE NOVEL Gender and Genre in Woolf, Forster, Sinclair, and Lawrence James J.Miracky SATIRE AND THE POSTCOLONIAL NOVEL V.S.Naipaul, Chinua Achebe, Salman Rushdie John Clement Ball THROUGH THE NEGATIVE The Photographic Image and the Written Word in Nineteenth-Century American Literature Megan Williams LOVE AMERICAN STYLE Divorce and the American Novel, 1881–1976 Kimberly Freeman FEMINIST UTOPIAN NOVELS OF THE 1970s Joanna Russ and Dorothy Bryant Tatiana Teslenko DEAD LETTERS TO THE NEW WORLD Melville, Emerson, and American Transcendentalism Michael McLoughlin THE OTHER ORPHEUS A Poetics of Modern Homosexuality Merrill Cole THE OTHER EMPIRE British Romantic Writings about the Ottoman Empire Filiz Turhan THE “DANGEROUS” POTENTIAL OF READING Readers and the Negotiation of Power in Nineteenth-Century Narratives Ana-Isabel Aliaga-Buchenau INTIMATE AND AUTHENTIC ECONOMIES The American Self-Made Man from Douglass to Chaplin Thomas Nissley REVISED LIVES Walt
    [Show full text]
  • Executive Currency P.O
    Executive Currency P.O. Box 2 P.O. Box 16690 ERoseville,xec MIu 48066-0002tive CDuluth,ur MNr e55816-0690ncy 1-586-979-3400ExecuP Phone/TextOt Boxi 2v e or C 1-218-310-0090P Ou Boxr 16690r e Phone/Textncy ExeRosevillecuP OMI tBox 480661-218-525-3651i 2v - 0002 e C Duluth, P Ou FaxBox MNr 16690 55816r e-0690n cy 1-586-979-3400 Phone/Text or 1-218-310-0090 Phone/Text Roseville MI 48066-0002 Duluth, MN 55816-0690 1SUMMER-218-525-3651 2018 Fax 1-586-979P-3400 O Box Phone/Text 2 or 1 -P218 O- 310Box- 009016690 Phone/Text SUMMER 2018 Roseville MI 480661-218-0002-525 - 3651 Duluth, Fax MN 55816-0690 1-586-979-3400 Phone/TextSUMMER or 2011-2188 -310-0090 Phone/Text 1-218-525-3651 Fax SUMMER 2018 Please contact the Barts at 1-586-979-3400 phone/text or [email protected] for catalog items 1 – 745. EXECUTIVE CURRENCY TABLE OF CONTENTS – SUMMER 2018 Banknotes for your consideration Page # Banknotes for your consideration Page # Meet the Executive Currency Team 4 Intaglio Impressions 65 – 69 Terms & Conditions/Grading Paper Money 5 F E Spinner Archive 69 – 70 Large Size Type Notes – Demand Notes 6 Titanic 70 – 71 Large Size Type Note – Legal Tender Notes 6 – 11 1943 Copper and 1944 Zinc Pennies 72 – 73 Large Size Type Notes – Silver Certificates 11 – 16 Lunar Assemblage 74 Large Size Type Notes – Treasury Notes 16 – 18 Introduction to Special Serial Number Notes 75 – 77 Large Size Type – Federal Reserve Bank Notes 19 Small Size Type Notes – Ultra Low Serial #s 78 - 88 Large Size Type Notes – Federal Reserve Notes 19 – 20 Small Size Type
    [Show full text]
  • United States Legal Tender Presidential Coin Decree
    United States Legal Tender Presidential Coin Decree Rubbly Griff litter wham while Whitman always grates his orthopraxies inherits seductively, he whistle so strategically. Cary is pantalooned and venturings apropos while shrubbier Willmott subintroduce and preamble. Vicious and suspect Jock deliberates his insulin trapanning knocks outdoors. Some good functioning as authorized means of the presidential decree of the kennedy half dollar The fact that the euro will not be representedby a corresponding note or coin of equal value until the introduction of euro notes and coins at the end ofthe transitional period is of no consequence. Silver coins the official money or the tender onto the United States. Here again any behavior by the United States thatdisrupts the smooth clean to EMU contemplated by the development of euro paymentsystems in replacement for national currency payment systems could be inconsistent with thesetreaty obligations. State declarations of select tender affect only involve monetary. Congress in all discretion. It legal tender. However, Maastricht Treaty the ECU will office be abolished but divine will become a currency while its ownright. For an optimal experience showcase our present on another browser. It was designed to provide the same currency, of a uniform legal excuse in trial the States. The law states that at least relevant in three issued dollars must snap a Sacagawea dollar. Supreme court did not a long as stated that when new rule. Such distinction between the united states to provide a crime here it has arisen since all market values index the presidential decree. The coins, largely unknown to the collector community, are called Smith counterfeits by cognoscenti.
    [Show full text]
  • About the Richmond
    regulates banks that have a national charter, and can Who appoints the Board of Governors? usually be recognized by the word “National” in or the The seven members, called governors, are appointed by letters “N.A.” after their names. On July 21, 2011, the U.S. president and are confirmed by the U.S. Senate for supervisory responsibility for federal savings and loans staggered 14-year terms. and federal savings banks switched to the Office of the Comptroller of the Currency. Who leads the Board of Governors? • The National Credit Union Administration regulates • The Board of Governors is led by a chair and a vice chair, federally chartered credit unions. who serve four-year terms. About the • States also have supervisory responsibility for • The chair and vice chair are nominated by the president state-chartered banks and credit unions, as well as and confirmed by the Senate. Richmond Fed other non-depository institutions, such as consumer • The current chair is Jerome Powell and the vice chair is finance companies, mortgage lenders and brokers, Stanley Fischer. payday lenders, and check cashers. What is the Fed doing to promote accountability Do people have accounts at the Federal Reserve? and transparency? No, they do not. We’re a “banker’s bank.” Only depository • The Fed is ultimately accountable to the American institutions and certain other financial entities are eligible people, and regularly provides information to the to have accounts at a Federal Reserve Bank. public so people better understand what we do. • The Federal Reserve Board chair reports to Congress twice a year on the health of the economy and the actions of the FOMC.
    [Show full text]
  • Frequently Asked Questions Coins and Notes July 2020
    Frequently Asked Questions Coins and Notes July 2020 A. Currency Issuance 1. Under what authority does the Bangko Sentral ng Pilipinas (BSP) issue currency? The BSP is the sole government institution mandated by law to issue notes and coins for circulation in the Philippines. In Particular, Section 50 of Republic Act (R.A) No. 7653, otherwise known as The New Central Bank Act, as amended by Republic Act No. 11211, stipulates that the BSP shall have the sole power and authority to issue currency within the territory of the Philippines. It also issues legal tender commemorative notes and coins. 2. How does the BSP determine the volume/value of notes and coins to be issued annually? The annual volume/value of currency to be issue is projected based on currency demand that is estimated from a set of economic indicators which generally measure the country’s economic activity. Other variables considered in estimating currency order include: required currency reserves, unfit notes for replacement, and beginning inventory balance. The total amount of banknotes and coins that the BSP may issue should not exceed the total assets of the BSP. 3. How is currency issued to the public? Based on forecast of currency demand, denominational order of banknotes and coins is submitted to the Currency Production Sub-Sector (CPSS) for production of banknotes and coins. The CPSS delivers new BSP banknotes and coins to the Cash Department (CD) and the Regional Operations Sub-Sector (ROSS). In turn, CD services withdrawals of notes and coins of banks in the regions through its 22 Regional Offices/Branches.
    [Show full text]
  • Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received
    Federal Reserve Release H.2 Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received No. 22 Week Ending June 1, 2019 Board of Governors of the Federal Reserve System, Washington, DC 20551 H.2 Board Actions May 26, 2019 to June 1, 2019 Forms Forms -- initial Board review to extend with revision the Federal Reserve Membership Applications (FR 2083A and FR 2083B) and Federal Reserve Bank Stock Applications (FR 2030, FR 2030a, FR 2056, FR 2086, FR 2086a, and FR 2087) and to extend without revision two Federal Reserve Membership Applications (FR 2083 and FR 2083C). - Proposed, May 30, 2019 Personnel Division of Supervision and Regulation -- appointment of Mona Elliot as deputy associate director and Christine Graham as assistant director. - Announced, May 31, 2019 Management Division -- appointment of Winona H. Varnon as director and Michell Clark as senior adviser. - Approved, May 30, 2019 Regulations and Policies Liquidity Coverage Ratio (LCR) -- interagency final rule to modify the LCR rule to treat certain municipal obligations as high-quality liquid assets, in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act. - Approved, May 23, 2019 (A/C) (A/C) = Addition or Correction Board - Page 1 of 1 H.2 Actions under delegated authority May 26, 2019 to June 1, 2019 S&R Supervision and Regulation RBOPS Reserve Bank Operations and Payment Systems C&CA Consumer and Community Affairs IF International Finance FOMC Federal Open Market Committee MA Monetary Affairs Bank Branches, Domestic San Francisco First Utah Bank, Salt Lake City, Utah -- to establish a branch at Village of Traverse Mountain, 3600 North Digital Drive, Lehi.
    [Show full text]
  • Minutes of the Federal Open Market Committee April 27–28, 2021
    _____________________________________________________________________________________________Page 1 Minutes of the Federal Open Market Committee April 27–28, 2021 A joint meeting of the Federal Open Market Committee Ann E. Misback, Secretary, Office of the Secretary, and the Board of Governors was held by videoconfer- Board of Governors ence on Tuesday, April 27, 2021, at 9:30 a.m. and con- tinued on Wednesday, April 28, 2021, at 9:00 a.m.1 Matthew J. Eichner,2 Director, Division of Reserve Bank Operations and Payment Systems, Board of PRESENT: Governors; Michael S. Gibson, Director, Division Jerome H. Powell, Chair of Supervision and Regulation, Board of John C. Williams, Vice Chair Governors; Andreas Lehnert, Director, Division of Thomas I. Barkin Financial Stability, Board of Governors Raphael W. Bostic Michelle W. Bowman Sally Davies, Deputy Director, Division of Lael Brainard International Finance, Board of Governors Richard H. Clarida Mary C. Daly Jon Faust, Senior Special Adviser to the Chair, Division Charles L. Evans of Board Members, Board of Governors Randal K. Quarles Christopher J. Waller Joshua Gallin, Special Adviser to the Chair, Division of Board Members, Board of Governors James Bullard, Esther L. George, Naureen Hassan, Loretta J. Mester, and Eric Rosengren, Alternate William F. Bassett, Antulio N. Bomfim, Wendy E. Members of the Federal Open Market Committee Dunn, Burcu Duygan-Bump, Jane E. Ihrig, Kurt F. Lewis, and Chiara Scotti, Special Advisers to the Patrick Harker, Robert S. Kaplan, and Neel Kashkari, Board, Division of Board Members, Board of Presidents of the Federal Reserve Banks of Governors Philadelphia, Dallas, and Minneapolis, respectively Carol C. Bertaut, Senior Associate Director, Division James A.
    [Show full text]
  • Recent Monetary Policy in the US
    Loyola University Chicago Loyola eCommons School of Business: Faculty Publications and Other Works Faculty Publications 6-2005 Recent Monetary Policy in the U.S.: Risk Management of Asset Bubbles Anastasios G. Malliaris Loyola University Chicago, [email protected] Marc D. Hayford Loyola University Chicago, [email protected] Follow this and additional works at: https://ecommons.luc.edu/business_facpubs Part of the Business Commons Author Manuscript This is a pre-publication author manuscript of the final, published article. Recommended Citation Malliaris, Anastasios G. and Hayford, Marc D.. Recent Monetary Policy in the U.S.: Risk Management of Asset Bubbles. The Journal of Economic Asymmetries, 2, 1: 25-39, 2005. Retrieved from Loyola eCommons, School of Business: Faculty Publications and Other Works, http://dx.doi.org/10.1016/ j.jeca.2005.01.002 This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. It has been accepted for inclusion in School of Business: Faculty Publications and Other Works by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. © Elsevier B. V. 2005 Recent Monetary Policy in the U.S.: Risk Management of Asset Bubbles Marc D. Hayford Loyola University Chicago A.G. Malliaris1 Loyola University Chicago Abstract: Recently Chairman Greenspan (2003 and 2004) has discussed a risk management approach to the implementation of monetary policy. This paper explores the economic environment of the 1990s and the policy dilemmas the Fed faced given the stock boom from the mid to late 1990s to after the bust in 2000-2001.
    [Show full text]
  • Money and the Sovereignty of the State
    021(< $1'7+( 629(5(,*17<2)7+(67$7( Robert A. Mundell Columbia University ,1752'8&7,21 3$57,7<3(62)629(5(,*17< 3ROLF\6RYHUHLJQW\DQG/HJDO6RYHUHLJQW\ 7KH6RYHUHLJQW\,VVXH (DUO\&RQFHSWVRI0RQHWDU\6RYHUHLJQW\ 7KH&DVHRIWKH0L[HG0RQH\V 3$57,,$0(5,&$1(;3(5,(1&( /DZIXO0RQH\LQ&RORQLDO$PHULFD 6SOLW0RQHWDU\6RYHUHLJQW\ 7KH*UHDW/HJDO7HQGHU&RQWURYHUV\ 'HYDOXDWLRQDQGWKH*ROG&ODXVH 3$57,,,629(5(,*17<$1'021(7$5<81,216 7\SHVRI&XUUHQF\$UHDV 7KUHH$SSURDFKHVWR0RQHWDU\8QLRQ $Q$OWHUQDWLYH$SSURDFKWR0RQHWDU\8QLRQ $)LQDO&RPPHQW Paper prepared for the International Economic Association Conference in Trento, September 4-7, 1997. ,1752'8&7,21 Monetary integration involves a consideration of two quite different types or dimensions of sovereignty. One is “policy sovereignty” and the other, “legal sovereignty.” Policy sovereignty refers to the ability to conduct policy independent of commitments to other countries. Legal sovereignty refers to the ability of a state to make its own laws without limitations imposed by any outside authority. Both concepts need to be considered in plans for monetary unions. What are the implications of a change in legal sovereignty when the national currencies of some of the oldest states in the world abandon national sovereignty, and what will they receive in exchange? In the middle of the last century, Johns Stuart Mill recognized but deplored the sentiment that made nations so attached to their own currencies: “So much of barbarism still remains in the transactions of the most civilized nations, that almost all independent countries choose to assert their nationality by having, to their own inconvenience and that of their neighbours, a peculiar currency of their own.”1 Has the world--or Europe--changed to such an extent that the national populations are now prepared to scrap those hallmarks of sovereignty that have existed for thousands of years? What is the nature of the sentiment that makes national currencies so difficult to give up? Some idea of this can be got from British or English history, whose currency goes back at least thirteen centuries.
    [Show full text]