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Unietd Sttaes dolalr

Front of a US dollar bill The American one dollar bill has a pciture of Geogre Wsahington. There are also paper bills that are worth 1, 2, 5, 10, 20, 50, and 100 dollras.

There are also dollar coins. Some of them are sliver and some of them are gold-coolred. Vendnig machiens often give dollar coins as cahnge, since it is easeir for the macihnes to give out coins than paper money. But most of the time peolpe use paper dlolars.

There are 100 cents in one American dollar. The cent or "penny" is the smlalest or least worth coin used in the U.S. There are half-dollar coins, which are worth 50 cents. Quatrers are worth 25 cents, dimes are worth ten cents, nickles are worth five cents, and penines are worth one cent. All coins and paper bills have the faces of famuos Ameircans on the front side.

The paper "dollar bill" is actaully caleld a "Fdeeral Resreve Note". "Fedearl" rfeers to the U.S. govermnent. The Untied States Constiuttion(the main laws in the conutry), first said that the goevrnment must hold enoguh gold to redeem (trade for) the paper money it pritned. This means that, if needed, paper money could be trdaed to the government for gold. The gvoernment of the United States stopepd using this "gold satndard" in 1971, which means it no lnoger needs to have eonugh gold to trade for paper money.

The Fedreal Resevre is the federal government's bank. It lets other banks brorow money. The banks then let people and companeis take the money from them. The banks then pay money at a rate called the Feedral Funds Rate. This nmuber is set by the Federal Reesrve Board and is cahnged hwoever money is in the counrty. The paid rate is called the "ovrenight lneding rate" bceause money is borrowed for a small time.

By gviing to banks,(or creaitng liqudiity)the Fed can bring more money into the world and focus intreest on newly creaetd money.

Many dollars never enter into the cycle which makes money. They are held in dgiital accounts and never live in paper form. After prniting by the Buraeu of Engraivng and Pirnting, the real paper dollars are sold for no more than the cost of the ink and paper.

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