Currency and Coin Frequently Asked Questions

Frequently Asked Questions

Federal Reserve Financial Services is committed to providing the information you need. Answers to many of our customers most frequently asked questions can be found using the links below.

If your question is not answered by the information provided on the site, My FedDirectorySM provides a comprehensive list of service and support contacts who can assist you.

Currency Questions

Coin Questions

Q: What is the role of the Federal Reserve with respect to banknotes and coins?

A: Notes

The Board of Governors of the Federal Reserve System is the issuing authority for Federal Reserve notes, the primary form of currency in circulation in the United States. The Board has a wide range of responsibilities related to Federal Reserve notes, from ensuring an adequate supply to protecting and maintaining confidence in U.S. currency.

The 12 regional Federal Reserve Banks, through their network of Districts and branches throughout the country, distribute Federal Reserve notes to the public through depository institutions. Reserve Banks process notes on high-speed sorting machines that check to ensure that they are genuine and fit for recirculation. If the notes are not genuine, Reserve Banks forward them to the local U.S. Secret Service office. If they are genuine and still in good condition, the notes are sent to depository institutions to fill new orders for currency. An individual note continues moving through this cycle until it is deemed unfit, or too worn, to be kept in circulation. Unfit notes are destroyed on-site at Reserve Banks in order to maintain the quality of currency in circulation.

Coins

The Board's role in coin operations is more limited than its role in cash operations, as the United States Mint is the issuing authority for coins. Reserve Banks distribute new and circulated coin to depository institutions to meet the public's demand, and take as deposits coin that exceeds the public's needs.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12626.htm) (Off-site Link)

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Q: Is U.S. currency still backed by gold?

A: Federal Reserve notes are not redeemable in gold, silver, or any other commodity. Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act to read: "The said [Federal Reserve] notes shall be obligations of the United States….They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve Bank." Federal Reserve notes have not been redeemable in silver since the 1960s. The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12770.htm) (Off-site Link)

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Q: Which denominations of currency does the Federal Reserve issue?

A: The Federal Reserve Board currently issues $1, $2, $5, $10, $20, $50, and $100 notes. The largest denomination Federal Reserve note ever issued for public circulation was the $10,000 note. On July 14, 1969, the Federal Reserve and the Department of the Treasury announced that banknotes in denominations of $500, $1,000, $5,000, and $10,000 (Off-site Links) would be discontinued due to lack of use. Although they were issued until 1969, they were last printed in 1945.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12600.htm) (Off-site Link)

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Q: How much does it cost to produce currency?

A: Each year, the Federal Reserve Board projects the need for new currency, which it acquires from the Department of the Treasury's Bureau of Engraving and Printing at the cost of production. The new-currency budget for 2011 is $676.1 million, and reflects the following costs per denomination:

  • $1 and $2 notes -- 5.5 cents per note
  • $5 and $10 notes -- 9.9 cents per note
  • $20 and $50 notes --10.9 cents per note
  • $100 note -- 9.9 cents per note

You can read further details on the production costs for Federal Reserve notes from the new currency budget (Off-site Link).

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12771.htm) (Off-site Link)

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Q: How much U.S. currency is in circulation?

A: Visit the Board of Governors website at http://www.federalreserve.gov/faqs/currency_12773.htm (Off-site Link) for the most recent update on currency in circulation.

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Q: What is currency paper made of?

A: Currency paper is one-fourth linen and three-fourths cotton.

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Q: What is the length of the dollar bill and how much does currency weigh?

A: Length = 6 1/8 inches (all denominations are the same)
Strap = 100 notes = 3.48 ounces
Bundle = 1,000 notes = 2.19 pounds
Brick = 4,000 notes = 8.75 pounds
Cash Pak = 16,000 notes = 35 pounds
Based on 1996 Series

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Q: How can I obtain a specific series note or coin?

A: To obtain a specific note or coin, we recommend you contact the institution you bank with to see if it will honor your request. Federal Reserve Banks provide currency only to depository institutions, which then distribute it to members of the public.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12598.htm) (Off-site Link)

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Q: How can I find out how much a specific bill is worth?

A: If you believe that a bill may be worth more than its face value, you should consult a currency collector or dealer. Also, the Bureau of Engraving and Printing (BEP) suggests publications for money collectors such as Bank Note Reporter and Coin World that routinely display advertisements of currencies for sale. These publications may be found at most reputable newsstands, book stores, and libraries.

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Q: Where can I redeem mutilated currency?

A: The Federal Reserve DOES NOT accept deposits of mutilated currency. Mutilated currency must be sent directly to the BEP with a letter stating the estimated value of the currency and an explanation of how the currency became mutilated.

Call the BEP toll-free number, 866-575-2361, or visit the BEP Web site (Off-site Link) to obtain information on shipping instructions for mutilated currency, and to see photographic examples.

For more information on mutilated currency, please visit the Mutilated Currency and Coin procedures page.

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Q: Where can I get $2 bills?

A: Local banks should have $2 bills. If your bank does not have any current inventory, it can order $2 bills from the Federal Reserve Bank.

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Q: Where can I purchase sheets of uncut currency?

A: You can purchase money from the Bureau of Engraving and Printing (Off-site Link).

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Q: How do I purchase/obtain a supply of shredded currency?

A: Federal Reserve Banks may distribute small packages of the currency residue to visitors and other members of the public in connection with Bank tours and other information and public relations programs.

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Q: How do I determine if a banknote is genuine? What should I do if I think I have a counterfeit note?

A: The best way to determine whether a note is genuine is to rely on the security features, such as the watermark and security thread. Counterfeit detection pens are not always accurate and may give you false results. To learn about these and other security features in genuine Federal Reserve notes, visit the new money public education website (Off-site Link).

It is important to know what the security features are in genuine currency, because if you end up with a counterfeit note, you will lose that money. A counterfeit note cannot be exchanged for a genuine one, and it is illegal to knowingly pass counterfeit currency.

If you live in the United States and you think you've received a counterfeit note, immediately notify the local police. Try to remember the physical characteristics of the person who passed the suspect counterfeit, and if possible write down the person's license plate number and vehicle description. Store the suspect counterfeit apart from genuine currency and release it as soon as possible to law enforcement authorities.

If you live outside the United States and want to report counterfeit currency, you should notify the U.S. Secret Service field office in your region. The Law Enforcement(Off-site Link) section of our currency education website, http://www.newmoney.gov/newmoney/default.aspx (Off-site Link), offers contact information for U.S. Secret Service field offices around the world.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12597.htm) (Off-site Link)

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Q: Why does the United States periodically redesign its currency?

A: We redesign U.S. currency to stay ahead of counterfeiting threats and keep counterfeiting levels low.

The Federal Reserve, together with our partners at the Treasury Department, Bureau of Engraving and Printing, and the United States Secret Service, continuously monitor the counterfeiting threats for each denomination of U.S. currency and make redesign decisions based on these threats. An inter-agency committee makes recommendations on design changes to the Secretary of the Treasury, who has final authority for U.S. currency designs.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12767.htm) (Off-site Link)

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Q: Where can we find information on the new $100 note?

A: Information on the new $100 note is posted at http://www.newmoney.gov/newmoney/default.aspx (Off-siteLink).

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Q: Is it legal for a business in the United States to refuse cash as a form of payment?

A: Section 31 U.S.C. 5103, entitled "Legal tender," states: "United States coins and currency [including Federal reserve notes and circulating notes of Federal reserve banks and national banks] are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above is a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law which says otherwise.

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12772.htm) (Off-site Link)

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Coin Questions

Q: How much does it cost to produce coin?

A: The United States Mint determines annual coin production. Reserve Banks influence this process by providing the Mint with monthly coin orders and a twelve-month, rolling coin-order forecast. Reserve Banks purchase coin at face value from the Mint. Further details on coins can be found on the Mint's website (Off-site Link).

SOURCE: Board of Governors, FAQs (http://www.federalreserve.gov/faqs/currency_12771.htm) (Off-site Link)

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Q: Where can I take worn pennies/coins to exchange them for new ones?

A: The Federal Reserve DOES NOT accept deposits of mutilated coin. Mutilated coin should be forwarded via 'Registered Mail, Return Receipt Requested' to the address below with documentation of the circumstances:

United States Mint
Independence Mall
P.O. Box 400
Philadelphia, PA 19105

For more information on mutilated currency, please visit the Mutilated Currency and Coin procedures page.

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Q: Where can I get new uncirculated coins?

A: Neither the Federal Reserve Banks nor the U.S. Mint provide coins directly to the public for circulation purposes. Instead, coins are placed into circulation through depository institutions (e.g. banks, savings & loans, credit unions, thrifts). The Reserve Banks issue circulated coins before new coins. You may need to contact several banks about supplies of new coins. The U.S. Mint sells certain commemorative and collectible coins and coin sets to the public through their website at http://www.usmint.gov (Off-site Link)

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Q: Where can I get golden dollars?

A: The U.S. Mint sells golden dollars directly to the public from their website at: http://www.usmint.gov (Off-site Link) or you may ask your local bank if they have any inventory.

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Q:How can I obtain an Eisenhower dollar?

A: Most Eisenhower dollars are in circulation. The U.S. Mint discontinued minting Eisenhower dollars in December 1978, and the last of the Eisenhower dollars were distributed to the Federal Reserve Banks in April 1979. Because the Eisenhower dollars are no longer minted, the Reserve Banks cannot order them from the U.S. Mint and supply them to banks. Coin dealers listed in the telephone yellow pages usually have a supply of Eisenhower dollars.

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Q: Where can I get more information about new coin releases?

A: Please visit the U.S. Mint Web site at http://www.usmint.gov (Off-site Link).

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Q: Are coins honoring current and historical people, event and places worth more than other coins with the same indicated face value?

A: No, all coins are valued at their face value. However, certain coins may have special numismatic value. Please check with a coin dealer for information.

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