ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A $1 bill lasts 5.8 years; $5 bill, 5.5 years; $10 bill, 4.5 years; $20 bill, 7.9 years; $50 bill, 8.5 years; and $100 bill, 15 years. Bills that get worn out from everyday use are taken out of circulation and replaced.

Detailed explanation-2: -AMERICA’S FIRST $100 FEDERAL RESERVE NOTE – Measuring 7.4216” x 3.125", the 1914 $100 Federal Reserve Note is not only a large-size “Horseblanket” note issued by the Federal Reserve Bank, but it’s the first $100 Federal Reserve Note ever issued.

Detailed explanation-3: -The average dollar bill has a life span of about 22 months before it is destroyed and replaced. A $100 bill, by comparison, can last close to 8 years or 89 months. The Bureau of Engraving and Printing (BEP) is responsible for producing new paper money for the Federal Reserve System.

Detailed explanation-4: -It is U.S. government policy that all designs of Federal Reserve notes remain legal tender, or legally valid for payments, regardless of when they were issued. This policy includes all denominations of Federal Reserve notes, from 1914 to present as per 31 U.S.C. § 5103.