United States Dollar

by Stephan Smith

The United States dollar is the official name of the currency used by the United States. The most recognized and most popular currency in the world, the United States dollar, also known as the US dollar, USD, greenback, buck, dollar bill, amongst other names, is one of the most widespread, most liquid and the most accepted forms of currency and money in circulation today. Unfortunately, the Federal Reserve note is considered the United States dollar for the time being. The United States note should be the one considered the United States dollar. Sadly, this isn’t the case. The symbol used for the United States dollar is $.

The United States dollar is currently regulated, issued and distributed by the central bank of the United States, the Federal Reserve. The Federal Reserve, however, does not manufacture the United States dollar Federal Reserve note. The Bureau of Engraving and Printing is responsible for all physical creation of the United States dollar under sole authorization from the Federal Reserve. The United States Mint is responsible for creating all United States coins under sole authorization from the Federal Reserve.

Shortly after creating the Federal Reserve notes and coins, they are sent directly to the the Federal Reserve. The US dollar is available for use as electronic currency, banknote currency and coin currency. The US dollar is also the world’s reserve currency.

Federal Reserve Note Appearance

Most United States dollar Federal Reserve notes look similar to each other, with only mild variations that depend on the denomination of the currency and the year it was designed. Overall, the USD Federal Reserve note is a rectangular piece of paper (a blend of cotton and linen) that is colored primarily with different shades of green. The words “Federal Reserve Note” and “The United States of America” are embroidered on it, among other phrases.

The denomination of the Federal Reserve note is written in numerical form and in English. The official seal of the Federal Reserve is also embroidered on the Federal Reserve note along with the profile of a former President of the United States or another significant figure in United States history. As to which President of the United States or other significant figure is embroidered on the Federal Reserve note depends on the denomination of the currency. Below is an image of a United States 5 dollar Federal Reserve note.

United States 5 Dollar Banknote

United States dollar - Federal Reserve Note - Series 2007
Denomination 5

If you ever held a US dollar in your hand, you would notice that there is great detail in the design embroidered on the bill. Hold the dollar bill up to a light source and you will notice that there are even images embroidered inside the paper. These images are only visible when the dollar bill is held up to a light source. The reason for this great detail is to prevent counterfeiting.

Federal Reserve Note Denominations

There are numerous United States dollar Federal Reserve note denominations available to the public. Let’s start from the ground up, shall we?

First off we have the United States one dollar Federal Reserve note. This bill features the first President of the United States, George Washington. According to the Bureau of Engraving and Printing, the United States one dollar Federal Reserve note makes up 45 percent of all currency production.

Of all the notes printed by the Bureau of Engraving and Printing, the $1 note makes up about 45% of currency production.

- Bureau of Engraving and Printing

United States One Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 1995
Denomination 1


Next we have the United States two dollar Federal Reserve note. This bill features the third President of the United States, Thomas Jefferson.
United States Two Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 2003
Denomination 2


Next up is the United States five dollar Federal Reserve note. This bill features the sixteenth President of the United States, Abraham Lincoln.
United States Five Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 2006
Denomination 5


The next one on the list is the United States ten dollar Federal Reserve note. This bill features the first secretary of the United States Treasury, Alexander Hamilton.
United States Ten Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 1999
Denomination 10


The next one up is the United States twenty dollar Federal Reserve note. This bill features the seventh President of the United States, Andrew Jackson.
United States Twenty Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 2004
Denomination 20

Next up is the United States fifty dollar Federal Reserve note. This bill features the eighteenth President of the United States of America, Ulysses S. Grant.

United States Fifty dollar Federal Reserve note

United States Dollar - Federal Reserve Note - Series 2004
Denomination 50

Now we are up to the United States one hundred dollar Federal Reserve note. This bill features a founding father of the United States, Benjamin Franklin.

United States One Hundred Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 2009
Denomination 100


Most Popular United States Federal Reserve notes

The most popular United States Federal Reserve Banknotes

Ok, it’s time. Time to start talking about bills that not many people see. Like the United States five hundred dollar Federal Reserve note. This bill features the twenty-fifth President of the United States, William McKinley.

United States Five Hundred Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 1934
Denomination 500

United States Five Hundred Dollar Federal Reserve Note 2

Another United States five hundred dollar bill shot

Next is the United States one thousand dollar Federal Reserve note. This bill features the twenty-second and twenty-fourth President of the United States, Grover Cleveland.

United States One Thousand Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 1934
Denomiation 1,000

Here is the United States five thousand dollar Federal Reserve note. This bill features the fourth President of the United States, James Madison.

United States Five Thousand Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 1934
Denomination 5,000

The highest denomination that has been produced by the Federal Reserve is the United States ten thousand dollar Federal Reserve note. This bill features the secretary of the United States Treasury during 1861-1864, Salmon Chase.

United States Ten Thousand Dollar Federal Reserve NoteUnited States Ten Thousand Dollar Federal Reserve Note

United States Dollar - Federal Reserve Note - Series 1928
Denomination 10,000

Theory Why the United States Dollar is Dominate

If you remember, I stated that the United States dollar is the world’s most popular currency. You may ask what constitutes as popular? When I say the United States dollar is popular, I mean it is the most accepted and most widespread currency in the world. As to why the US dollar is the most popular currency can be answered by a theory I have.

The reason why the United States dollar is the most popular currency in the world is due to two factors. One is output. The United States is the world’s largest economy. With a GDP close to 15 trillion dollars, the United States offers a seemly countless number of goods and services. The United States’ closest rival in terms of output of goods and services is China. China’s GDP is around 4.5 trillion dollars; that’s around a 10 trillion dollar difference when compared to the United States. The US produces so much more goods and services compared to China, which is the second largest economy in the world.

Now here’s the key point to the United States dollar’s success.To buy goods and services from the United States, foreign countries would have to convert their currencies to United States dollars. That requirement significantly raises demand for US dollars.

The second factor that I believe is the reason for the United States dollar’s popularity around world is oil. Oil is one of the world’s most valuable goods. Countries that are part of the Organization of Petroleum Exporting Countries (OPEC) require foreign countries to buy oil in United States dollars. Since every developing and and established country always need petroleum (crude oil) in some fashion, demand for the United States dollar will always remain high.



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Leave a Comment

{ 15 comments… read them below or add one }

michael16 October 12, 2013 at 11:27 PM

Doyou guys did not see the all seeing eye

Reply

Jack March 3, 2013 at 4:39 AM

Thanks. The US Dollar is the dominant in the world. It dominates the competition.

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Jack March 3, 2013 at 4:41 AM

*most dominant

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Dave November 19, 2012 at 6:15 PM

Love the cite ! Good research. By the way, the US did issue a one hundred thousand dollar bill (the highest they ever issued), for a brief time. Printed Dec. ‘34 through Jan ‘35, it was a Gold Certificate bearing US President Woodrow Wilson. However, I don’t know if it was technically under the Federal Reserve (which did exist then) and it was illegal to be held in private hands, used for transactions between Fed Reserve Banks. I don’t know if it is STILL technically illegal and/or if this referred to the law THEN barring US citizens for hoarding gold. When FDR took us off the gold standard in ‘33 a recall of these notes was put into place (all gold certificates) and it was illegal to own them after a certain time of the recall.

In the 60‘s that prohibition, holding gold certificates in private hands, was lifted, but they were never later redeemable for gold, just face value, fiat. So, a 20 dollar gold certificate today at the grocery store will buy you…twenty dollars of stuff no more no less. As to the forementioned 100K bill, donno. You can’t get government gold from it (Mr. Nixon changed that, I believe in ‘71), but as to technically spending that bill as a private citizen for 100K fiat, that may still be illegal on this bill too. Donno.

Lastly, ALL currency issued by the Federal government, whenever it was, whatever type (gold/silver certificates/legal tender notes/fed notes, ‘greenbacks’ from the 19th Century, ect.) are ALL valid today for face value, and considered legal tender. There are, I think, three series of gold certificates which are not, but they have all been pulled from circulation and destroyed. One exception, a batch of 1900 10k gold bills of Andrew Jackson were all pulled, but due to a fire at a government storage facility, escaped into ‘circulation.’ These bills are ‘illegal’ to hold now, but are NOT redeemed by the government.

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Charles August 3, 2012 at 12:50 PM

Found the information very useful and interesting since a few roads we have here in the Philippines are named after your presidents such as McKinley and Taft.

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ken gui May 21, 2012 at 8:19 AM

Hi!,just wanna ask if there is $1 billion dollar bill produced?or is this an authenticated/true? Thanks!

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Stephan Smith May 22, 2012 at 1:44 PM

Hi Ken,

Thanks for the question.

I don’t know if their is a real $1 billion dollar bill. I don’t think there is but I’m not sure.

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Billy Jacksin May 19, 2012 at 8:37 AM

It is NOT the United States Dollar. NO WHERE ON THE NOTE DOES IT READ “UNITED STATES DOLLAR”!

It is the FEDERAL RESERVE NOTE and FEDERAL RESERVE NOTE ONLY!!!

The United States Dollar would be printed by the US Treasury.

Reply

Stephan Smith May 19, 2012 at 10:21 PM

Hello Billy Jacksin.

First off, thank you for visiting my website and leaving a comment. I always welcome new comments.

1) The Federal Reserve Note is the official currency of the United States of America.

2) The ISO (International Organization of Standards) code for the official currency of the United States of America is USD. USD stands for United States dollar.

3)The Federal Reserve Note is printed by the Bureau of Engraving and Printing. That is a government agency under the umbrella of the US Treasury.

4) At this current moment in time, the Federal Reserve Note is considered the United States dollar, whether you like it or not.

Reply

Piseth March 8, 2013 at 11:19 AM

Stephan Smith, you are awesome, guy! This is a nice response and your whole article alike is very much informative and interesting.

Andrew May 13, 2012 at 5:15 PM

The fed is a private bank, and the reason we are in such big debt is because our gov lends the money from the fed

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pang fah May 2, 2012 at 4:19 AM

one of my friend have a 1000000 bill form America ,,i wanna know if you can help is it real or fake ,,thanks

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Eric March 14, 2012 at 11:08 PM

The Euro isn’t going to be worth much once this Greece fiasco is over.

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c0ld3l3m3nt January 8, 2012 at 9:20 AM

“fashion, demand for the United States dollar will always remain high.”
Thats the funny **** Ive ever heard seeing how USD isnt worth that much… Euros is worth more then USD..lol

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Stephan Smith March 21, 2013 at 8:05 PM

Thanks. I appreciate it. Visit my site anytime.

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