The bills in your wallet are worth the number on their face, but ever wondered where they came from and what it cost to produce them?
The Federal Reserve decides how many bills are to be printed in its Currency Budget and then these bills are printed by the U.S. Bureau of Engraving and Printing(BEP). Of course, the cost of printing is nowhere near the actual value, but it is still significant. The difference between the two is called Seigniorage.
In its 2017 Currency Budget, the Federal Reserve states that it will print 7.1 billion bills worth $209.05 billion this year. That is almost 2.7% less than the 7.3 billion bills budgeted to be printed last year, and an almost 20% drop from the 8.8 billion bills ordered to be printed in 2007.
Among all the bills to be printed this year, the $20 will have the highest volume, a stark departure from ten years ago when Fed data showed that the printing order for $1 bill was the largest.
On average, printing one bill will cost 10.3 cents this year versus 9.4 cents last year and it is over 15% higher than the average cost of printing a bill from 2013. In total, the government expects to spend $673.8 million on printing new bills this year.
The culprit in the increase for 2017 is higher staff costs—in particularan additional $9.3 million budgeted for “staffing and overtime expenses to support the acceleration of the next design family of notes.”
Cost by denominations
Printing a one-dollar bill costs 5.4 cents while printing a $100 bill costs 15.4 cents. Surprisingly, the most expensive bill to print this year will be the $50 bill at 19 cents a piece.
Smaller denominations are generally less expensive to print because of fewer security features. For example, the $5 bill has two water marks while the $10, $20 and $50 bills add color-shifting ink to the list of security features. The $100 bill includes a watermark, a 3-D security ribbon, a new color shifting feature (“the Bell in the Inkwell”) and a color-shifting ink, according to the Fed.
The Federal Reserve's order for $50 bills to be produced in 2024 is less than one-third the total in 2022. But it's usually not new bills that catch the attention of collectors. “Consumers continue to hold a significant amount of cash that may be unlikely to be used for daily purchases,” according to a Fed report.
But this hasn't stopped the consistent churn of print currency in the US. Federal Reserve data shows that the volume of currency in circulation has only increased since 2002. Every denomination — including less common banknotes such as the $2 bill — has increased in circulation, from the humble dollar to the Benjamins.
And even though you don't see a lot of $2 bills in everyday life, they are still being printed. The Treasury Department's Bureau of Engraving and Printing (BEP) planned to print up to 204 million $2 bills in 2022, CNN reported.
The new and modified $50 notefeatures include: A large numeral50 on the back of the note. A larger portrait, movedoff-center to create more space for a watermark. The watermark to the right of the portrait depicting the same historical figure as the portrait.
The currency redesigns continue with the $50 note, which features subtle background colors of blue and red. The $50 note includes an embedded security thread that glows yellow when illuminated by UV light. When held to light, a portrait watermark of President Grant is visible from both sides of the note.
The modern version of the $50 bill features Ulysses S. Grant on the front. As of 2019, the bill made up a little more than 3% of all notes printed in the United States, according to the Jacqueline Rare Antique website. Fifty-dollar bills have the second-lowest circulation after the $2 bill.
American paper currency comes 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.
Are Money Supply and Inflation Related? Yes, the money supply and inflation are related. To combat unemployment, the Federal Reserve increases the money supply, promotes economic growth, and makes debt cheaper; however, these policies have the potential to cause inflation.
If the government prints too much money, people who sell things for money raise the prices for their goods, services and labor. This lowers the purchasing power and value of the money being printed.
“A serial number '1' for a 1976 $2 bill would be worth $20,000 or more. But [for] a majority of those people holding 1976 $2 bills, they are only worth face value. There are very few that actually exceed face value.” Other high-value serial numbers include what collectors call “solid” or “ladders.”
If your $2 bill dates back to 1886 and has a red seal with a silver certificate, you're in luck. That bill is worth $4,500. A number of other iterations of the $2 bills with a red seal can also fetch well over a $1,000. Bills with brown seals are also very valuable.
According to online auction service U.S. Currency Auctions, if the bill was minted and printed before 1976, it could actually be worth as much as $4,500. That eye-popping price also depends on if the bill was uncirculated.
American paper currency comes 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.
Rare $50 notes issued during the 19th century can fetch tens of thousands of dollars on the collectibles market, according to various auction and collector's sites. But even more modern $50 bills in wider circulation are worth $250 or more in average condition.
Introduction: My name is Arline Emard IV, I am a cheerful, gorgeous, colorful, joyous, excited, super, inquisitive person who loves writing and wants to share my knowledge and understanding with you.
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