BANKING AFFAIRS

Detailed explanation-1: -Federal Reserve notes are the paper currency circulating in the United States. These are commonly known as dollar bills.

Detailed explanation-2: -The Federal Reserve Board currently issues $1, $2, $5, $10, $20, $50, and $100 notes.

Detailed explanation-3: -The difference between a United States Note and a Federal Reserve Note is that a United States Note represented a “bill of credit” and, since it was issued by the government itself and does not involve either lending or borrowing, was inserted by the Treasury directly into circulation free of interest.

Detailed explanation-4: -Federal Reserve Indicators For denominations $5, $10, $20, $50, and $100, the note has a letter and number designation that corresponds to one of the 12 Federal Reserve Banks. The letter of each indicator matches the second letter of the serial number on the note.

Detailed explanation-5: -The first paper money issued by the government were “demand notes” commonly referred to as “greenbacks.” In 1862, Congress retired the demand notes and began issuing United States notes, also called legal tender notes.