What Is a Federal Reserve Note?

Video Transcript

"So what is a federal reserve note? A federal reserve note is actually money. What you normally see as your paper money. A federal reserve note is not to be confused with federal bank notes and those were produced up until the depression era and those were produced by different banks around the country, the federal banks. All that system is gone away so the federal reserve note, a bank note is what we commonly refer to as paper money. So the federal reserve note that we have now is a little differently than things we have had in the past. We have had the federal reserve bank notes plus we have had notes that were based on gold bouillon that were held by the US government plus we've had silver notes so there has been a number of different forms of what we use for paper money but a federal reserve note right now is very simple. It's just our paper money that we use every day."