United States dollar

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United States Dollar (sign: $ ; code: USD ; also abbreviated $ AS and is referred to as US Dollar , or US Dollar ) is the official currency of the United States and its archipelagic territories under the United States Constitution since 1792. For the most practical purposes, it divided into 100 percent smaller ( ¢) units, but is sometimes divided into 1000 factories (?) for accounting purposes. The outstanding banknotes consist of the Federal Reserve Notes denominated in United States dollars (12 U.S.C.Ã,§Ã, 418).

Since the 1971 suspension of the convertibility of US currency into any precious metal, the US dollar is, de facto, fiat money. Since it is the most widely used in international transactions, the US dollar is the world's major reserve currency. Some countries use it as their official currency, and in many other countries are de facto currencies. In addition to the United States, it is also used as the sole currency in two British Outer Territories in the Caribbean: the British Virgin Islands and the Turks and Caicos Islands. Some countries use Federal Reserve records for paper money, while still printing their own coins, or also receive US dollar coins (such as Sacagawea or presidential dollars). On September 20, 2017, there were about $ 1.58 trillion in circulation, of which $ 1.53 trillion was in Federal Reserve records (the remaining $ 50 billion in coins).

Video United States dollar

Overview

Article I, Section 8 of the US Constitution provides that Congress has the power "For coins". Laws that apply this force are currently codified in 31 U.S.C.Ã, Ã, Â, 5112. Section 5112 regulates the forms in which the United States dollar should be excluded. These coins are both designated in Section 5112 as "legitimate means of payment" in debt repayment. Sacagawea dollar is one example of copper alloy dollars. The pure silver dollar is known as American Silver Eagle. Section 5112 also provides for the printing and publishing of other coins, which have values ​​ranging from one cent to 100 dollars. These coins are more fully explained in United States dollar coins.

The Constitution states that "Regular Statements and Accounts for the Receipts and Expenditures of all Public Money shall be published from time to time". The provisions of the Constitution are made specifically by Section 331 of Title 31 of the United States Code. The amount of money reported in the "Report" is currently expressed in US dollars (for example, see Financial Statements 2009 from the United States Government ). The US dollar may be described as a United States account unit.

The word "dollar" is one of the words in the first paragraph of Section 9 of Article I of the Constitution. There, the "dollar" is a reference to the Spanish grinded dollar, a coin that has a monetary value of 8 units of the Spanish currency, or realist. In 1792, the US Congress passed the Money Laundering Act. Section 9 of that act authorizes the production of various coins, including "DOLLAR OR UNIT - each of which is the value of the dollar that Spain mills because it is now equal to the present, and contains three hundred and seventy-one grains and four sixteen parts of pure grain; four hundred and sixteen standard silver grains ". Section 20 of the action provided, "That the account money of the United States shall be expressed in dollars, or units... and that all accounts in public office and all proceedings in US courts shall be deposited and in compliance with this rule". In other words, this action sets the United States dollar as a unit of currency of the United States.

Unlike Spanish grinded dollars, the US dollar is based on a decimal value system. In addition to the dollar, the currency formally sets the monetary unit mill or one thousandth of a dollar (symbol?), Penny or one hundredth of a dollar (symbol Ã, Â ¢), a dime or a tenth of a dollar, and eagle or ten dollars, with the weight and composition specified for gold, silver, or copper for each. It was proposed in the mid-1800s that a hundred dollars was known as a union, but no coin union was ever beaten and only a pattern for $ 50 half a union existed. However, only penny is used daily as part of the dollar; "a penny" is used solely as a coin's name with a value of 10Ã, Â ¢, while "hawks" and "factories" are largely unknown to the general public, although factories are sometimes used in taxes, and the price of gasoline is usually in the form $ X.XX9 per gallon, for example, $ 3.599, more often written as $ 3.59 ⁹ / ₁₀ . When it is currently issued in circulation, the same denomination or less than a dollar is emitted as US coins while denominations equal to or greater than one dollar are transmitted as Federal Reserve records (with the exception of gold, silver and platinum coins worth up to $ 100 as a means of payment legitimate, but much more valuable as gold bullion). Both coins and one dollar notes are produced today, although note forms are significantly more common. In the past, "paper money" was sometimes issued in denominations of less than a dollar (currency denomination) and gold coins were issued for circulation up to $ 20 (known as "double eagle", discontinued in the 1930s). The term eagle is used in the Coinage Act of 1792 for a ten dollar denomination, and then used in naming gold coins. Paper currencies of less than a dollar in denominations, known as "currency shards", are also sometimes referred to as "shinplasters". In 1854, James Guthrie, then Minister of Finance, proposed to create a $ 100, $ 50 and $ 25 gold coin, referred to as "Union", "Half Union", and "Quarter Union", implying denominations of the Union = $ 100.

Today, the USD note is made of cotton fiber paper, unlike most ordinary paper, made of wood fiber. US coins are produced by the United States Mint. US dollar banknotes are printed by the Bureau of Engraving and Printing and, since 1914, have been issued by the Federal Reserve. The "large records" published before 1928 measured 7.42 times 3.125 inches (188.5 x 79.4 mm); Small records, introduced that year, measure 6.14 by 2.61 by 0.0043 inches (155.96 by 66.29 times 0.11 mm). When the current smaller US currency is introduced, the currency is referred to as the Philippine-sized currency because the Philippines has previously adopted similar measures for its legal currency.

Maps United States dollar

Etymology

In the 16th century, Count Hieronymus Schlick of Bohemia began printing coins known as Joachimstalers (from German thal , or currently usually Tal , "valley", a cognate with "dale" in English), named Joachimstal, the valley where the silver is mined (St Joachim's Valley, now JÃÆ'¡chymov, then part of the Bohemian Kingdom, now part of the Czech Republic). Joachimstaler was later shortened to German Taler , a word that finally found its way into Danish and Swedish as daler , Norwegian as reason and > daler , Dutch as daler or daalder , the Ethiopic language as ??? ( Talari ), Hungarian as tallÃÆ' Â © r , Italian as tallero , and English as dollars . Alternatively, the is said to be derived from the German Guldengroschen coin ("big guilder", being silver but the same as the gold guilder), printed from silver from Joachimsthal.

Coins printed on Joachimsthal immediately lend their names to other coins of the same size and weight from elsewhere. One example is a Dutch coin depicting a lion, then the Dutch name leeuwendaler (in English: lion dollars).

The leeuwendaler was authorized to contain 427.16 fine silver grains of 0.75 and locally certified for between 36 and 42 stuivers. It's lighter than the big denomination coins that are then circulating, so it is more profitable for Dutch traders to repay foreign debt at leeuwendalers and it becomes the preferred coin for foreign trade.

Leeuwendaler was very popular in the Indies and in the Netherlands New Netherland Colony (New York), and circulated throughout the Thirteen Colonies during the 17th century and early 18th century. It is also popular throughout Eastern Europe, where it causes the Romanian and Moldovan currencies currently called leu (literally "lion").

Among the English speaking communities, coins became popularly known as the lion's dollar - and are the origin of the name dollars . The modern American-English pronunciation of dollars is still very close to the Dutch pronunciation in the 17th century on daler .

With this lion dollar analogy, the Spanish peso - with the same weight and form as the lion dollar - became known as the Spanish dollar. By the mid-18th century, the lion's dollar had been replaced by the well-known Spanish dollar, the famous "pieces of eight," which were widely distributed in the Spanish colonies of the New World and in the Philippines. Finally, the dollar became the name of the first official American currency.

Nickname

The colloquialism "buck" (s) (as the English word "quid " (s, pl) for pound sterling) is often used to refer to dollars from different countries, including dollars US. This term, dating from the 18th century, probably originated in the colonial leather trade. It may also come from the term poker. " Greenback " is another nickname that was originally applied specifically to the 19th Century Demand for Dollar Demand made by Abraham Lincoln to finance the costs of the Civil War for the North. The original notes are printed black and green on the back side. It's still used to refer to the US dollar (but not to other countries dollars). Other famous names of the dollar as a whole in denominations include "greenmail ", " green " and " president dies " (the last because the president the deceased is pictured in most bills).

" big ", sometimes shortened to " G ", is a generic term for $ 1,000. The suffix " K " or " k " (from "kilo-") is also commonly used to indicate this amount (such as "$ 10k" means $ 10,000). However, $ 1,000 is no longer used in general. "Big " or " stack ", usually referring to a multiple of $ 1,000 (like "" which means $ 50,000). The $ 100 bill is called "Benjamin ", "Benji ", " Ben ", or " Franklin " (after Benjamin Franklin), " C-note " (C is the Roman numerals for 100), " notes of Century " or " bill " (eg " two bills "to $ 200). A $ 50 note is sometimes called " meter " or " grant " (after President Ulysses S. Grant, pictured on the front). $ 20 is referred to as "double chainsaws", " Jackson " (after Andrew Jackson), or "double eagle". Money $ 10 is referred to as " chainsaw ", " ten-place " or " Hamilton " (after Alexander Hamilton). Money $ 5 as " Lincoln ", " fins ", " fiver " or " five-point ". The rarely used $ 2 bills are sometimes called "deuce ", " Tom ", or " Jefferson " (after Thomas Jefferson). $ 1 note as " single " or " buck ". The dollar has also been referred to as "bone " and " bone " in plural (eg " twenty bones " equals $ 20). Newer designs, with portraits displayed on the main body of the front (not in the cameo insets), on color-coded paper by denomination, sometimes referred to as "bigface " notes or "Monopoly money ".

" Piastre " is the original French word for US dollars, used for example in the French texts of Louisiana Purchases. Calling the dollar as a piastre is still common among French speakers of Cajun and New France. Modern French uses dollars for this currency unit as well. The term is still used as a slang for the US dollar in the French-speaking Caribbean islands, especially Haiti.

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Dollar sign

The $ symbol, usually written before the numerical amount, is used for US dollars (and also for many other currencies). The sign is the result of the evolution of the 18th century from the abbreviation of scribe "p ^s " for pesos, common name for the Spanish dollar that circulated widely in the New World from the 16th to the 19th century. Spanish peso or dollar is printed in Spanish America, namely in Mexico City; PotosÃÆ', Bolivia; and Lima, Peru. The p and s eventually come to be written more than one another causing $ .

Another popular explanation is that it comes from the Pillars of Hercules on the Spanish Seal of the Spanish dollar. This Hercules Pillar on Spanish silver dollar coins takes the form of two vertical bars (||) and swinging fabric ribbons in the form of "S".

Yet another explanation shows that the dollar sign is formed from capital letters U and S written or printed one on top of the other. This theory, popularized by the Ayn Rand novelist at Atlas Shrugged, does not take into consideration the fact that the symbol has been used before the formation of the United States.

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History

American dollar coins were originally based on the value and appearance of the Spanish dollar, used extensively in Spanish Americans from the 16th century to the 19th century. The first dollar coins issued by the United States Mint (founded 1792) are similar in size and composition to the Spanish dollar, printed in Mexico and Peru. Spanish silver dollars, US, and later, Mexican silver pesos circulated side by side in the United States, and the Spanish and Mexican peso dollars remained a valid means of payment until the 1857 Money Laundering Act. Coins from various British colonies also circulated. The lion dollar is popular in the Netherlands New Netherland Colony (New York), but the lion dollar also circulated throughout the British colonies during the 17th century and early 18th century. Examples circulating in colonies are commonly used so that the design is indistinguishable, so it is sometimes referred to as "dog dollars".

The US dollar was first defined by the Coinage Act of 1792, which sets the "dollar" to be based on the Spanish grinded dollar and 371 grains and 4 sixteenth parts of pure grain or 416 grains (27.0 g) of standard silver and "eagle" into 247 and 4/8 grains or 270 grains (17 g) of gold (again depending on purity). A choice of 371 grain points emerges from Alexander Hamilton's decision to base a new American unit on the average weight of the choice of Spanish dollars used. Hamilton got the treasury to weigh the Spanish dollar sample and the average weight went out to 371 grains. The new Spanish dollar is typically about 377 grains of weight, and the new US dollar with little discount in relation to the Spanish dollar.

The same currency action also sets the eagle value for 10 dollars, and the dollar on ¹ / ₁₀ eagle. Mentioned as 90% of silver alloy coins in denominations 1, ¹ / ₂ , ¹ / ₄ , / ₁₀ , and ¹ /< sub> 20 dollars; it calls for 90% gold alloy coins in denominations of 1, ¹ / ₂ , ¹ / ₄ , and ¹ / ₁₀ hawks. The value of gold or silver contained in dollars is then converted to the relative value in the economy for the purchase and sale of goods. This allows the value of things to remain constant over time, except for the entry and outflux of gold and silver in the nation's economy.

The early currency of the United States did not show the president's face, as is the custom now; although today, by law, only the portrait of the deceased person may appear in the United States currency. In fact, the newly formed government opposes the leader's portrait of currency, practice compared to European monarchy. Currencies as we know today do not get their faces until after the beginning of the 20th century; before that "head" side of the currency used facial profiles and walked, sat, and standing figures from Greek and Roman mythology and Native American composite. The last coins converted into historic American profiles are coins (1946) and Dollar (1971).

For articles on colonies and state currency, see Connecticut pound, Delaware pound, Georgian pound, pound Maryland, pound Massachusetts, New Hampshire pound, New Jersey pound, pound New York, pound North Carolina, Pennsylvania pound, Rhode Island pound, Pound South Carolina, and the Virginia pound.

Continental currency

During the American Revolution, thirteen colonies became independent states. Freed from UK monetary rules, they each issued a paper worth  £ sd to pay for military expenses. Continental Congress also began issuing "Continental Currency" in Spanish dollars. The dollar is valued relative to the state currency at the following prices:

• 5 shilling - Georgia
• 6 shillings - Connecticut, Massachusetts, New Hampshire, Rhode Island, Virginia
• 7 / ₂ shillings - Delaware, Maryland, New Jersey, Pennsylvania
• 8 shillings - New York, North Carolina
• 32 Ã, ¹ / ₂ shillings - South Carolina

Continental currencies depreciated badly during the war, giving rise to the notorious "unfit continental" phrase. The main problem is that uncoordinated monetary policy between Congress and the state, which continues to issue credit bills. In addition, both Congress and governments from several states have the will or the means to stop the bill from circulation through taxation or bond sale. The currency was eventually replaced by silver dollars at the rate of 1 dollar silver to 1000 continental dollars.

Silver and gold standard

From 1792, when the Mint Act was passed, the dollar was defined as 371.25 grains (24,056 g) of silver. Printed gold coins are not denominated and traded for market value relative to Congressional standards of silver dollars. 1834 saw a shift in the gold standard to 23.2 grains (1.50 g), followed by a slight adjustment for 23.22 grains (1.505 g) in 1837 (ratio 16: 1).

In 1862, banknotes were issued without the support of precious metals, due to the Civil War. Silver and gold coins continued to be issued and in 1878 the relationship between paper money and coins was returned. This disconnection from the support of gold and silver also occurred during the War of 1812. The use of paper not supported by precious metals also occurred under the Confederate Budget from 1777 to 1788. Without strong support and easily falsified, the continents quickly lost their value, raises the phrase "not worth the continental". This is the main reason for "No country will... do anything but gold and silver, give a tender in debt payments," the article in article 1, article 10 of the Constitution of the United States.

To finance the War of 1812, Congress passed the issuance of Treasury Notes, short-term debts that could be used to pay public dues. While they are meant to serve as debt, they function "to some extent" as money. Treasury Notes is reprinted to help complete the reduction of public revenues generated from Panic of 1837 and Panic of 1857, as well as to help finance the Mexican-American War and the Civil War.

In addition to the Financial Records, in 1861, Congress authorized the Treasury to borrow $ 50 million in Demand Notes, which have no interest but can be exchanged on demand for precious metals. However, in December 1861, the Union government supplies of the specie were defeated by a request for redemption and they were forced to suspend temporary redemption. The following February, Congress passed the Official Tender Act of 1862, issuing United States Records, which could not be exchanged on request and contained no interest, but was a valid means of payment, which meant that creditors had to accept them at face value for payments anything except for public debt and import tariffs. However, silver and gold coins continue to be issued, resulting in the depreciation of newly printed notes through Gresham's Law. In 1869, the Supreme Court ruled at Hepburn v. Griswold that Congress could not require creditors to accept the United States Records, but canceled the verdict the following year in Cases of Legal Offenses. In 1875, Congress passed the Specie Refund Act, requiring the Ministry of Finance to permit the US Notes to be redeemed for gold after 1 January 1879. The Treasury stopped issuing the United States Notes in 1971.

The Gold Standard Law of 1900 abandoned the bimetallic standard and defined the dollar as 23.22 grains (1.505 g) of gold, equivalent to setting the price of 1 troy ounce of gold at $ 20.67. Silver coins continued to be issued for distribution until 1964, when all silver was removed from dime and quarters, and a half dollar was reduced to 40% silver. The last half silver dollar was issued for distribution in 1970. The gold coins were confiscated by Executive Order 6102 issued in 1933 by Franklin Roosevelt. The gold standard was changed to 13.71 grains (0.888 g), equivalent to setting the price of 1 troy ounce of gold at $ 35. This standard lasted until 1968.

Between 1968 and 1975, various gold pegs were installed, eventually culminating in a sudden, on August 15, 1971, until the convertibility of dollars into gold, later nicknamed Nixon Shock. The last peg was $ 42.22 an ounce before the US dollar was allowed to float freely in the currency market.

According to Bureau of Engraving and Printing, the largest record ever printed is the $ 100,000 Gold Certificate, Series 1934. This entry was printed from December 18, 1934, until January 9, 1935, and issued by the United States Treasurer. to the Federal Reserve Bank only to the same amount of gold bars held by the Treasury. This note is used for transactions between the Federal Reserve Bank and is not circulated among the general public.

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Coins

The official coins of the United States have been produced annually since 1792 to date.

Discontinuities of discontinued coins include:

• Half-cent: ¹ / ₂ Ã, Â ¢, 1793-1857
• Fugio Cent: 1 Â ¢, 1787
• Piece of two cents: 2 Â ¢, 1863-1873
• Three cents bronze: 3Ã, Â ¢, 1863 (not released)
• Three cents of nickel: 3Ã, Â ¢, 1865-1889
• Trime: 3Ã, Â ¢, 1851-1873
• Half the dice: 5 Â ¢, 1792-1873
• Tenty cent parts: 20Ã, Â ¢, 1875-1878
• Gold dollar: $ 1.00, 1849-1889
• Quarter hawks: $ 2.50, 1792-1929
• Three dollar deduction: $ 3.00, 1854-1889
• Stella: $ 4.00, (not released)
• Half eagle: $ 5.00, 1795-1929, printed as anniversary in 1986-present
• Hawk: $ 10.00, printed as warning 1984-2003
• Double eagle: $ 20.00, 1849-1933, 2009
• Half-union: $ 50.00, 1877 (pattern only), 1915 (Panama-Pacific International Exposition Coin)
• Union: $ 100.00, 2015 (High help; not released)

Collector coins that do not have daily transactions.

• The American Eagles are not originally available from Mint to individuals but must be purchased from authorized dealers. In 2006, The Mint started direct selling to individual bullion coins that were not circulated with special end results, and were marked a "W" mint.
  • American Silver Eagle Coin $ 1 (1 troy ounce) 1986 silver bullion-now
  • American Gold Eagle $ 5 ( ¹ / ₁₀ troy oz), $ 10 ( ¹ / ₄ troy oz), $ 25 ( ¹ / ₂ troy oz), and $ 50 (1 troy oz) Gold Coins 1986-now
  • American Platinum Eagle ($ 10 coins, $ 25, $ 50, and $ 100 platinum) 1997-present
• United States warning coins - special edition coins
  • $ 50.00 (Half Attention) 1915
  • Presidential Declaration (see below) 2007-present

Technically, all these coins are still legally valid at face value, although some are now much more valuable for their numismatic value, and for gold and silver coins, the value of their precious metals. From 1965 to 1970, the half-dollar Kennedy was the only circulating coin with silver content, removed in 1971 and replaced with cupronickel. However, since 1992, the US Mint has been producing a special Silver Proof Set in addition to regular annual proof sets with silver, quarter, and half dollars in lieu of the standard version of copper-nickel. In addition, an experimental $ 4.00 (Stella) coin was also printed in 1879, but never placed into circulation, and correctly regarded as a pattern rather than a true coin denomination.

The $ 50 coins mentioned were only produced in 1915 for the Panama-Pacific International Fair (1915) celebrating the opening of the Panama Canal. Only 1,128 were made, 645 of which were octagonal; this remains the only non-round US coin and the biggest and toughest ASS coin ever produced.

The $ 100 gold coin is produced in the form of a big favor during 2015, although it is produced primarily for collectors, not for general circulation.

From 1934 onwards, the only denominations produced for circulation were nickels, nickel, a penny, a quarter, a half dollar, and a dollar. Nickel is the only coin still used today that is essentially unchanged (except in its design) of the original version. Every year since 1866, nickel has 75% copper and 25% nickel, except for 4 years during World War II when nickel is needed for war.

Due to the low penny value, several attempts have been made to remove pennies as coins in circulation.

Coin collector

The United States Mint produces a special Set of Evidence for collectors and speculators. Silver Proofs tend to be standard designs but with a penny, a quarter, and a half dollar that contains 90% silver. Starting in 1983 and ending in 1997, Mint also produced a set of evidence containing this year's commemorative coins with regular coins. Another type of proof set is the Presidential Dollar Proof Set where four special $ 1 coins are printed each year featuring a president. Due to budget constraints and relatively unpopular relative stock increases, the new President's dollar coin production for circulation was suspended on December 13, 2011, by US Treasury Secretary Timothy F. Geithner. The future redemption of the coin will be made solely for collectors.

• 2007 has George Washington, John Adams, Thomas Jefferson, and James Madison
• 2008 has James Monroe, John Quincy Adams, Andrew Jackson, and Martin Van Buren
• 2009 has William Henry Harrison, John Tyler, James K. Polk, and Zachary Taylor
• 2010 has Millard Fillmore, Franklin Pierce, James Buchanan, and Abraham Lincoln
• 2011 has Andrew Johnson, Ulysses S. Grant, Rutherford B. Hayes, and James A. Garfield
• 2012 has Chester Arthur, Grover Cleveland (1st term), Benjamin Harrison, and Grover Cleveland (2nd semester)
• 2013 has William McKinley, Theodore Roosevelt, William Howard Taft, and Woodrow Wilson
• 2014 has Warren G. Harding, Calvin Coolidge, Herbert Hoover, and Franklin D. Roosevelt
• 2015 has Harry S Truman, Dwight D. Eisenhower, John F. Kennedy, and Lyndon B. Johnson
• 2016 has Richard M. Nixon, Gerald R. Ford, and Ronald Reagan.

Dollar coins

The first US Dollar was printed in 1794. Known as Hair Flowing Dollar, it contains 416 "standard silver" grains (89.25% silver and 10.75% copper), as determined by Section 13 of the 1792 Wash Law. Section 9 of the Act has a "dollar value that is milled in Spain".

Dollar coins have not been very popular in the United States. The silver money was printed intermittently from 1794 to 1935; a copper-nickel dollar of the same size, featuring President Dwight D. Eisenhower, printed from 1971 to 1978. The gold dollar was also printed in the 19th century. Dollar coins Susan B. Anthony was introduced in 1979; this proved unpopular as they are often mistaken for places, because their size is almost the same, their rolling edge, and the same color. Recording dollars for this circulation was suspended in 1980 (collector pieces were beaten in 1981), but, as with all previous US coins, they remained a valid payment instrument. Since the amount of Anthony dollars held by the Federal Reserve and issued primarily to make changes in the vending machines and transit has completely expired, Anthony's additional dollars were beaten in 1999. In 2000, a new $ 1 coin, featuring Sacagawea, (Sacagawea dollars) was introduced, which corrects some of Anthony's dollar issues by having smooth edges and golden colors, without requiring any changes to the vending machines that accept Anthony's dollars. However, this new coin fails to achieve the popularity of existing $ 1 bills and is rarely used in everyday transactions. Failure to simultaneously withdraw the dollar and weak publicity efforts has been cited by coin proponents as the main reason for the failure of dollar coins to gain popular support.

In February 2007, the US Mint, under the Presidential Coins Act of $ 1 in 2005, introduced a new US $ 1 Presidential coin. Based on the success of the "50th State Quarters" series, the new coins feature a presidential order in the framework of their inauguration, starting with George Washington, on the front side. The reverse side shows the Statue of Liberty. To allow for larger and more detailed photographs, the traditional "E Pluribus Unum" inscription, "In God We Trust", the year of making or publishing, and the mint mark will be written on the edge of the coin, not in the face.. This feature, similar to the edge inscription seen on English coins Ã, Â £ 1, is usually unrelated to US coin design. The "Liberty" inscription has been eliminated, with the Statue of Liberty serving as an adequate substitute. In addition, due to the nature of US coins, this will be the first time there will be US coins circulating of different denominations with the same president shown on the front (head) (Lincoln/penny, Jefferson/nickel, Franklin D. Roosevelt/dime, Washington/quarter, Kennedy/half dollar, and Eisenhower/dollar). Another unusual fact about the new $ 1 coin is that Grover Cleveland will have two coins with two different portraits issued due to the fact that he is the only US President elected to two non-consecutive terms.

Early releases of Washington coins include a faulty coin sent mainly from the Philadelphia mint to Florida and Tennessee banks. Highly sought after by collectors, and trading as much as $ 850 each in a week of discovery, the fault coin is identified by the absence of an edge "E PLURIBUS UNUM IN GOD WE TRUST 2007 P". Mint origins are generally accepted for most of Philadelphia, although identifying source mints is not possible without opening mint packets also containing marked units. Edge letters printed in both orientations with respect to "head", some amateur collectors were initially tricked into buying "inverted fonts". Some cynics also mistakenly point out that the Federal Reserve earns more profit from dollars than dollar coins because they wear out in a few years, while the coins are more permanent. The error of this argument arises because the new record is printed to replace the outdated records, which have been withdrawn from circulation, not bringing in net income to the government to cover the cost of printing new records and destroying the old ones. Since most vending machines can not afford to make changes in paper money, they usually only receive $ 1, although some will make changes in dollar coins.

Mint marks

Note

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Banknote

The US Constitution stipulates that Congress will have the power to "borrow money on US credits". Congress has used that power by authorizing the Federal Reserve Bank to issue the Federal Reserve Notes. The note is "United States liability" and "will be redeemed for money at the request of the United States Treasury, in the city of Washington, the District of Columbia, or any Federal Reserve bank". The Federal Reserve Notes are established by law as a "legitimate means of payment" for debt repayment. Congress also authorizes the issuance of more than 10 other types of banknotes, including the United States Notes and Federal Reserve Bank Notes. The Federal Reserve Note is the only type that has remained in circulation since the 1970s.

The current denominations are $ 1, $ 2, $ 5, $ 10, $ 20, $ 50, and $ 100. Notes above the $ 100 denomination stopped being printed in 1946 and officially withdrawn from circulation in 1969. Note it is used primarily in interbank transactions or by organized crime; it was the last use that prompted President Richard Nixon to issue an executive order in 1969 to stop using it. With the advent of electronic banking, they became less necessary. Notes in the $ 500, $ 1,000, $ 5,000, $ 10,000, and $ 100,000 denominations are all produced at one time; view large denominated bills in US currency for details. With the exception of the $ 100,000 bill (which was only issued as the 1934 Series Gold Certificate and never publicly distributed, thus it is illegal to own), this record is now a collector's item and is worth more than its face value for collectors.

Although still very green, the post-2004 series incorporates other colors to distinguish different denominations better. As a result of the 2008 decision in the accessibility suit filed by the American Council of the Blind, the Bureau of Engraving and Printing plans to implement enhanced tactile features in the next redesign of each note, except for $ 1 and up-to-date versions of $ 100. planning bigger numbers, higher contrasts, more color differences, and the distribution of currency readers to help the blind during the transition period.

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Means of trouble

The monetary base consists of coins and Federal Reserve Notes circulating outside the Federal Reserve Banks and US Treasuries, plus deposits held by depositors at the Federal Reserve Bank. The adjusted monetary base has increased from about 400 billion dollars in 1994, to 800 billion in 2005, and more than 3000 billion in 2013. The amount of money in circulation increases (or decreases) by the actions of the Federal Reserve System. Eight times a year, the 12-person Federal Open Market Committee meets to determine US monetary policy. Every working day, the Federal Reserve System is involved in Open market operations to implement the monetary policy. If the Federal Reserve wants to increase the money supply, it will buy securities (such as US Government Bonds) anonymously from the bank in exchange for dollars. Instead, he will sell securities to banks in exchange for dollars, to take dollars from circulation.

When the Federal Reserve makes a purchase, it credits the seller's reserve account (with the Federal Reserve). This money is not transferred from any available fund - at this point the Federal Reserve has created a new high-powered money. Commercial banks can freely withdraw cash excess reserves from their reserve accounts at the Federal Reserve. To meet the demand, the Federal Reserve placed an order to print money from the US Treasury. The Ministry of Finance in turn sends this request to the Engraving and Printing Bureau (for printing new dollars) and the Mint Bureau (to label the coins).

Usually, the short-term goal of open market operations is to achieve certain short-term interest rates. In other instances, monetary policy may in turn require the targeting of certain exchange rates relative to some foreign currency or else relative to gold. For example, in the case of the United States Federal Reserve is targeting the federal funds rate, the rate at which member banks lend to each other overnight. Other main ways of conducting monetary policy include: (i) Lending discount window (as lender of last resort); (ii) fractional deposit loans (changes in reserve requirements); (iii) Moral suasion (persuading certain market players to achieve certain results); (iv) "Open mouth operation" (talking monetary policy with the market).

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Value

Paragraph 6 Section 8 of Article 1 of the US Constitution states that the US Congress shall have the power to "coin money" and to "regulate the value" of domestic and foreign coins. The Congress exercised that power when the Coinage Act Act came into force in 1792. The law was reserved for printing the first US dollar and declared that the US dollar would have "the value of the dollar that Spain milled as the same now now".

The table on the right shows the equivalent amount of goods, in a given year, can be purchased with $ 1. The table shows that from 1774 to 2012 the US dollar has lost about 97.0% of its purchasing power.

The decline in the value of the US dollar relates to price inflation, which is an increase in the general level of prices of goods and services in an economy over a period of time. The consumer price index (CPI) is a measure that estimates the average price of consumer goods and services purchased by a household. The US Consumer Price Index, published by the Bureau of Labor Statistics, is a measure that estimates the average price of consumer goods and services in the United States. This reflects inflation as experienced by consumers in the cost of their daily lives. The graph showing the US CPI relative to 1982-1984 and the yearly yearly CPI change shown on the right.

The value of the US dollar declined significantly during wartime, especially during the American Civil War, World War I, and World War II. The Federal Reserve, established in 1913, is designed to provide an "elastic" currency subject to "substantial quantity change in a short time", which differs significantly from previous forms of high-strength money such as gold, national bank records, and silver coins. In the long run, the previous gold standard kept prices steady - for example, the price level and value of the US dollar in 1914 were not much different from the price levels in the 1880s. The Federal Reserve initially succeeded in maintaining the value of the US dollar and price stability, reversing inflation caused by the First World War and stabilizing the value of the dollar during the 1920s, before leading a 30% deflation in US prices in the 1930s..

Under the Bretton Woods system established after World War II, the value of gold is set to $ 35 per ounce, and the value of the US is thus anchored to the value of gold. The increase in government spending in the 1960s, however, caused doubts about the ability of the United States to maintain this convertibility, gold stocks shrank as banks and international investors began to convert dollars into gold, and as a result the value of the dollar began to decline. Faced with an emerging currency crisis and an impending danger that the United States would no longer be able to exchange dollars for gold, the gold convertibility was finally terminated in 1971 by President Nixon, resulting in "Nixon shock".

Therefore, the value of the US dollar no longer anchored to gold, and fell on the Federal Reserve to maintain the value of US currency. The Federal Reserve, however, continued to increase the money supply, resulting in stagflation and decline in the value of the US dollar in the 1970s. This was largely due to the prevailing economic view at the time that inflation and real economic growth were related (the Phillips curve), and hence inflation was considered relatively harmless. Between 1965 and 1981, the US dollar lost two-thirds of its value.

In 1979, President Carter appointed Paul Volcker, Chairman of the Federal Reserve. The Federal Reserve tightened the money supply and inflation was substantially lower in the 1980s, and hence the value of the US dollar was stable.

Over a period of thirty years from 1981 to 2009, the US dollar lost more than half its value. This is because the Federal Reserve has targeted non-zero inflation, but a low and stable inflation rate - between 1987 and 1997, the inflation rate was around 3.5%, and between 1997 and 2007 about 2%. The so-called "Big Moderation" of economic conditions since the 1970s is credited to monetary policy that targets price stability.

There is an ongoing debate about whether the central bank should target zero inflation (which means a constant value for the US dollar over time) or stable low inflation (meaning the value of the dollar continues to decline but slowly over time, as is the case now). Although some economists support zero inflation policy and are therefore a constant value for the US dollar, others argue that such policies limit the ability of the central bank to control interest rates and stimulate the economy when needed.

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Exchange rate

Historical exchange rate

Note:
1. The values ​​of the Mexican peso before the 1993 revaluation 2. Value at the beginning of the year

Source:

• US: The last 4 years, 2009-2012, 2005-2008, 2001-2004, 1997-2000, 1993-1996, all available year
• Many countries: 2004-present
• Australia: 1970-present
• China: 1974-1991, 1993-1995
• Mexico: 1976-1991
• Canada: 1977-1991

Current exchange rate

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See also

• United States dollar coins
• United States currency is fake
• Federal Reserve Note
• US dollar use internationally
• Major denominations of the United States currency
• Series (United States currency)
• Strong dollar policy
• US. Dollar Index

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Note

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References

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Further reading

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External links

• US. Bureau of Engraving and Printing
• US. Currency and Coins Circulate and Circulate
• US. Page Currency Education Program with a picture of all the current banknotes
• American Currency Exhibition at San Francisco Federal Reserve Bank
• The relative value of US dollars, from 1774 to now
• Historical Currency Converter
• Summary of BEP Production Statistics
• US. Currency tracking experiments
• 50 Factors Affecting US Dollar Value - Currency Trading.net
• Askar Akaev predicts the fall of the US dollar in December 2012
• Live Rates Currency rates are updated every 60 seconds

Image of US coins and coins

• US. Currency Education Program: Banknote
• US. Mint: Image Library
• The historic and current paper money from the United States (in English) (in German)

Source of the article : Wikipedia