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O Hold the bill up to a light to check for a watermark. A watermark bearing. the image of the person whose portrait is on the bill can be found on all $10, $20, $50, and $100 bills series 1996 and later. The watermark is embedded in the paper to the right of the portrait, and it can be seen from both sides of the bill.

Hold the note to light to see a faint image to the right of the portrait on denominations $5 and higher. Watermarks are visible from both sides of the note. On denominations $10 and higher, the watermark matches the portrait.

Real one dollar bills will have a green treasury seal to the right of the portrait under the text, "ONE". The treasury seal should be clear and sharp. Check for the Federal Reserve Bank seal. This seal is black and to the left of the portrait.

Because American money is made of cotton and linen, blue and red cloth fibers are woven into the material as another identifying feature. Finally, watermarks are found on most bills and can only be detected by light passing through the bill.

$1 Note Federal Reserve Bank Seal. A black seal to the left of the portrait bears the name and corresponding letter of the distributing Federal Reserve Bank. Treasury Seal. A green seal to the right of the portrait represents the U.S. Department of the Treasury. ... Portrait and Vignette. ... Serial Numbers.

Security Thread All genuine FRNs, except the $1 and $2, have a clear thread embedded vertically in the paper. The thread is inscribed with the denomination of the note and is visible only when held to light. Each denomination has a unique thread position and glows a different color when held to ultraviolet (UV) light.

The watermark is created during the paper making process and is caused by variations in the density of the paper. As light passes through these tiny variations in thickness, it creates different tones.

Magnetic ink is used in the printing of the currency. Each denomination has a different face and, therefore, a different magnetic signature. Similar to a bar code reader, the machines recognize the denomination by its magnetic signature.

Functions of Money A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value.

Economists differentiate among three different types of money: commodity money, fiat money, and bank money. Commodity money is a good whose value serves as the value of money. Gold coins are an example of commodity money.