Federal Reserve notes are the official currency of the United States, issued and regulated by the Federal Reserve System, which is the central banking system of the country. They are commonly referred to as dollar bills or simply dollars.
These notes serve as a medium of exchange in the U.S. economy and are accepted as legal tender for all debts, public and private. They are denominated in various denominations, such as $1, $5, $10, $20, $50, and $100, each featuring different designs and security features to prevent counterfeiting.
Federal Reserve notes are printed by the Bureau of Engraving and Printing, a division of the U.S. Treasury Department, under the authority and guidance of the Federal Reserve System. They are a liability of the Federal Reserve Banks, meaning that they are a debt owed by the Federal Reserve System to the holders of these notes.
The value of Federal Reserve notes is based on the confidence and trust the public has in the U.S. government. They are widely accepted as a medium of exchange and store of value not only within the United States but also internationally. As legal tender, they must be accepted by individuals and organizations for the payment of debts, although private businesses can choose what forms of payment they will accept.
Overall, Federal Reserve notes play a vital role in facilitating the commerce and economic activities of the United States, providing a stable and widely accepted currency for the exchange of goods and services in the country.
