BANKING AFFAIRS

Detailed explanation-1: -Federal Reserve Notes, also United States banknotes, are the currently issued banknotes of the United States dollar.

Detailed explanation-2: -Federal Reserve notes are the paper currency circulating in the United States. These are commonly known as dollar bills. The U.S. Treasury prints the Federal Reserve notes, which are backed by the U.S. government. Each note’s lifespan differs according to its denomination.

Detailed explanation-3: -American paper currency come in seven denominations: $1, $2, $5, $10, $20, $50, and $100. The United States no longer issues bills in larger denominations, such as $500, $1, 000, $5, 000, and $10, 000 bills. But they are still legal tender and may still be in circulation.

Detailed explanation-4: -The Federal Reserve Board currently issues $1, $2, $5, $10, $20, $50, and $100 notes.

Detailed explanation-5: -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.