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Detecting Counterfeit Money Counterfeit currency is imitation currency produced without the legal sanction of the state or government. Counterfeiting has serious implications. The dumping of counterfeit money into circulation affects the money supply . That can impact stability of value, reducing the purchasing power of money . The Federal Reserve

Bank and the U.S. Treasury maintain a great deal of vigilance to prevent the printing of counterfeit money. If you find a counterfeit bill, the correct procedure is to turn it over to the United States Secret Service. Can you spot a counterfeit? For this exercise you will need a U.S. bank note (bill) in any denomination, printed after 1996. (A $5 bill is best.) 1. Check the portrait. • Does it appear lifelike?  Yes  No • Are the details of the portrait very fine and clear?  Yes  No • Does it stand out from the background?  Yes  No On a counterfeit bill, the portrait is often lifeless and flat, merging into a dark and mottled background. The details of the portrait may not be clear and crisp, or it may contain ink smudges or bleeds. Real currency uses secret printing methods which cannot be replicated. Portraits on bills are detailed and contain very fine lines. The printing is clear and crisp. Portraits appear to stand out from the background. 2. Check out the Federal Reserve and Treasury Seals. • Are the saw-tooth points of the seals clear?  Yes  No • Are the saw-tooth points sharp?  Yes  No On a counterfeit bill, the seals may have uneven, blunt, or broken saw-tooth points. 3. Check out the border. • Are the fine lines in the border clear?  Yes  No • Are the fine lines of the border unbroken?  Yes  No • Is there any ink bleed (like a smear) along the border?  Yes  No Look closely. On a counterfeit bill, the lines in the outer margin and scrollwork may be blurred and indistinct, and there may be slight ink bleeds along the border. PRODUCT PREVIEW

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Lesson 3 | Show Me the Medium of Exchange

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