Federal Reserve Notes

What is a Federal Reserve Note?

Federal Reserve Notes are United States Currency also known as Greenbacks, Feds, or FRNs.  Federal Reserve Notes were authorized by an Act of Congress, December  23, 1913.  Federal Reserve Notes are the main currency that we use today.   All Federal Reserve Notes can be distinguished by their green seals.  Federal Reserve Notes are obligations of the United States and are a first lien on the assists of the issuing Federal Reserve Bank.  These notes are also secured by a pledge of collateral equal to the face value of the note.  The collateral consists of one of the following assets:  1) Gold Certificates, 2) Special Drawing Right Certificates, 3) United States Government Securities, or 4) "eligible paper" as described by the statue.  

Federal Reserve Notes are currently issued in denominations of $1, $2, $5, $10, $20, $50, and $100.  The Department of the Treasury discontinued issuance of  $500, $1,000, $5,000, and $10,000 Federal Reserve Notes on July 14, 1969 because of a lack of demand.