Understanding U.S. Currency
United States currency is used throughout the world as a measuring stick for the value of goods and services traded. Despite its prominent position, the United States currency system is relatively new on the world's currency stage.
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History
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The Congress of the Confederation of the United States adopted the current currency system in 1785. The first dollar was issued in 1792. One dollar represented specified weights of silver or gold, dependent upon their purity. Currency representation changed often in shape, size and make for the next 100 years. By 1913 the Federal Reserve Act designated the Federal Reserve System to regulate money flow. They also created Federal Reserve Notes, which was the start of paper currency.
Outside USA
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Many other countries outside the United States use the American dollar as their symbol of currency. Among them are El Salvador, Palau and the British Virgin Islands. Ecuador and East Timor also use the American paper dollar along with their own coins. The United States dollar is also viewed as a de facto currency (like the Euro) in several countries such as Lebanon, Zimbabwe and Panama.
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Paper Currency
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The United States currency system measures through the decimal system. 100 one-cent pieces and four 25-cent pieces both equal one dollar.
United States paper currency includes denominations of $1, $2, $5, $10, $20, $50 and $100. Each bill features a past president of the United States, with the exception of Benjamin Franklin, who is featured on the $100 bill.
Many denominations contain security features to thwart counterfeiters. Some of these include watermarks, microscopic threads and hard-to-duplicate coloring on the bills. In March 2008, the U.S. Mint released a new $5 bill that featured two watermarks and a thread that glows blue in ultraviolet light.
Coins
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Common coin currency includes denominations of one, five, ten and 25 cents (or a quarter), 50 cents and $1. All current coins feature past presidents with the exception of a $1 coin variant featuring Sacagawea. One-cent pieces, also known as pennies, were made of 93 percent copper prior to 1983. Modern pennies are now mostly zinc with a thin copper layer.
Beginning in 1998, the U.S. Mint decided to pay tribute to the United States by issuing quarters with each state featured on the back. They did this in order of statehood. The last state, Hawaii, was minted and released in 2008.
Historical Value
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Some older versions of United States currency are more valuable that the nomination printed on their faces. Some pennies, for example, were created with less frequency at certain mints than others, adding value because of their rarity. Research sites such as Rarecurrency.com feature the current value of hard-to-find United States currency.
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