What is the official ISO 4217 currency code for the United States dollar, and what are its common symbols?

The official ISO 4217 currency code for the United States dollar is USD. It is commonly represented by the dollar sign ($), and also by US$ or U$ to distinguish it from other dollar-denominated currencies.

According to the provided text, what is the subunit of the U.S. dollar, and what are its symbols?

The subunit of the U.S. dollar is the cent, which is one-hundredth of a dollar. The symbol for the cent is ¢.

What historical act established the U.S. dollar and its division into cents, and when was it enacted?

The Coinage Act of 1792 established the U.S. dollar and divided it into 100 cents. This act also authorized the minting of coins denominated in dollars and cents, setting the foundation for the nation's currency system.

What was the original definition of the U.S. dollar under the bimetallic standard introduced by the Coinage Act of 1792?

The Coinage Act of 1792 defined the U.S. dollar under a bimetallic standard, equating it to 371.25 grains (24.057 g) of fine silver or, from 1834, 23.22 grains (1.505 g) of fine gold. This established a fixed relationship between silver and gold for the dollar's value.

How did the U.S. dollar's link to gold evolve throughout the 20th century?

The Gold Standard Act of 1900 formally linked the dollar solely to gold. In 1934, this equivalence was revised to $35 per troy ounce of gold, a standard that was eventually repealed in 1971, ending the dollar's direct convertibility to gold.

When did the U.S. dollar become the world's primary reserve currency, and what event solidified this status?

The U.S. dollar began emerging as an important international reserve currency after World War I, displacing the British pound sterling. Its status was solidified by the Bretton Woods Agreement towards the end of World War II, establishing it as the world's primary reserve currency.

What is the role of the Federal Reserve System in the United States' monetary policy?

The Federal Reserve System acts as the nation's central bank and is responsible for conducting monetary policy. Its primary goals are to promote maximum employment, stable prices, and moderate long-term interest rates, while also ensuring financial system stability.

What was the significance of the "Crime of '73" in the context of U.S. monetary policy?

The "Crime of '73" refers to the Coinage Act of 1873, which suspended the minting of the standard silver dollar. This action effectively ended the bimetallic standard by removing the unlimited coinage of silver, coinciding with a rise in silver prices due to discoveries like the Comstock Lode.

What are some of the colloquial nicknames for the U.S. dollar, and what might be their origins?

Common colloquial nicknames for the U.S. dollar include "buck(s)", which may originate from the colonial leather trade or poker terminology. "Greenback" is another nickname, historically referring to U.S. Notes printed during the Civil War due to their green ink.

What are the commonly used denominations of U.S. banknotes and coins currently in circulation?

The most frequently used denominations of U.S. currency in circulation include banknotes of $1, $5, $10, $20, $50, and $100. For coins, the commonly used denominations are the 1 cent (penny), 5 cents (nickel), 10 cents (dime), and 25 cents (quarter).

What is the origin of the dollar sign ($), according to the text?

One prominent theory suggests the dollar sign ($) evolved from a late 18th-century scribal abbreviation for the Spanish peso, 'pˢ'. The 'p' and 's' were written over each other, eventually forming the '$' symbol. Another theory connects it to the Pillars of Hercules on Spanish dollars.

How did the U.S. dollar's value change during major wartime periods?

The value of the U.S. dollar experienced significant declines during wartime, notably during the American Civil War, World War I, and World War II, primarily due to increased government spending and inflationary pressures.

What is the "exorbitant privilege" associated with the U.S. dollar?

The "exorbitant privilege" refers to the United States's ability to borrow trillions of dollars in its own currency at minimal interest rates and with virtually zero default risk. This is largely due to the dollar's status as the world's primary reserve currency.

What are the primary tasks assigned to the Federal Reserve System?

The Federal Reserve System is tasked with conducting the nation's monetary policy to promote maximum employment and stable prices, regulating financial institutions, and acting as a lender of last resort to ensure financial stability.

What is the significance of the Bretton Woods Agreement of 1944 regarding the U.S. dollar?

The Bretton Woods Agreement of 1944 established the post-World War II international monetary system, designating the U.S. dollar as the world's primary reserve currency and the only currency directly linked to gold. This agreement laid the groundwork for global financial institutions like the IMF and World Bank.

What are the materials used in the composition of current U.S. circulating coins?

The current U.S. circulating coins are made of various materials: the penny is primarily zinc coated with copper, the nickel is a copper-nickel alloy, and the dime, quarter, half dollar, and dollar coin are clad coins made of a copper core with outer layers of copper and nickel.

Why has the one-dollar coin historically struggled with popular circulation in the United States?

The one-dollar coin has faced challenges in gaining widespread circulation primarily because of the continued production and popularity of the one-dollar bill. Despite several attempts to promote coin usage, the familiarity and convenience of the bill have hindered the coin's adoption.

What is the origin of the term "dollar" itself, tracing back to 16th-century Bohemia?

The term "dollar" originates from the "joachimstaler," a silver coin minted in the 16th century in Bohemia from silver mined in Joachimsthal (Joachim's Valley). This coin's name was eventually shortened and adopted into many languages, including English as "dollar."

What are the main components of the U.S. money supply as defined by M0, M1, M2, and M3?

The U.S. money supply includes the Monetary Base (M0), which consists of currency in circulation and bank reserves held at the central bank. This is supplemented by M1, M2, and M3, which represent various forms of bank money balances held by depositors, backed by bank assets and investments.

What does the U.S. Constitution state about the power to "coin money"?

Article I, Section 8 of the U.S. Constitution grants Congress the power "to coin money" and "regulate the value thereof." This constitutional authority forms the basis for the federal government's control over currency issuance and value.

What is the historical significance of the "piece of eight" in relation to the U.S. dollar?

The "piece of eight," also known as the Spanish milled dollar or peso, was widely circulated in the Americas and served as the model for the U.S. dollar. Its division into eight "bits" (reales) influenced early American counting practices and the naming of currency denominations, like the "two bits" for a quarter.

What is the "Great Moderation," and what role did monetary policy play in it?

The "Great Moderation" refers to a period of relative economic stability and low inflation experienced in the U.S. from the 1970s onwards. Monetary policy, particularly the Federal Reserve's focus on price stability through targeting low, stable inflation, is credited with contributing to this period.

What are some of the countries that officially use the U.S. dollar as their currency?

Several countries officially use the U.S. dollar, including Ecuador, El Salvador, Panama, and various territories like Puerto Rico and the U.S. Virgin Islands. Additionally, nations under Compacts of Free Association, such as the Marshall Islands and Micronesia, also use the dollar.

What is the purpose of the U.S. Dollar Index (USDX)?

The U.S. Dollar Index (USDX) is an important indicator that measures the strength or weakness of the U.S. dollar relative to a basket of six major foreign currencies. It provides a benchmark for the dollar's performance in international foreign exchange markets.

What is the "dual mandate" of the Federal Reserve?

The "dual mandate" refers to the Federal Reserve's two primary monetary policy objectives: maintaining maximum employment and keeping prices stable (low inflation). These goals guide the Fed's decisions on interest rates and the money supply.

What is the origin of the nickname "greenback" for U.S. currency?

The nickname "greenback" originally applied to U.S. Demand Notes issued during the Civil War, which were printed with green ink on the reverse side. While initially a specific type of currency, the term became a general nickname for U.S. paper money.

How does the U.S. dollar function in global commodity markets?

The U.S. dollar serves as the standard currency unit for quoting and trading goods in global commodity markets. Payments for commodities like oil and gold are predominantly settled in U.S. dollars, reinforcing its international importance.

What are "Eurodollars," and how do they differ from the Euro?

Eurodollars are U.S. dollar-denominated deposits held in banks outside the United States, including foreign branches of U.S. banks. Despite the name, they are distinct from the Euro, which is the currency of the Eurozone.

What was the purpose of the Coinage Act of 1873?

The Coinage Act of 1873 is significant for officially ending the bimetallic standard by discontinuing the minting of the standard silver dollar, a move often referred to as the "Crime of '73." It also adjusted the specifications for other silver coins.

What is the historical context for the phrase "not worth a continental"?

The phrase "not worth a continental" arose from the severe depreciation of "Continental Currency" issued by the Continental Congress during the American Revolution. The currency lost value due to uncoordinated monetary policy and a lack of mechanisms to retire it from circulation.

What is the significance of the Federal Reserve Act of 1913?

The Federal Reserve Act of 1913 established the Federal Reserve System as the central bank of the United States. It was created to provide an elastic currency, supervise the banking system, and address financial panics, particularly following the Panic of 1907.

What are some of the denominations of U.S. banknotes that were discontinued and are no longer printed but remain legal tender?

Banknotes in denominations of $500, $1,000, $5,000, and $10,000 stopped being printed after 1946 and were officially withdrawn from circulation in 1969. Although no longer printed, these notes are still considered legal tender.

What is the historical basis for the U.S. dollar's decimal system of units?

The decimal system for U.S. currency, including units like mills (1/1000), cents (1/100), dimes (1/10), and eagles (10 dollars), was prescribed by the Continental Congress in 1786 and further detailed in the Coinage Act of 1792. This system aimed for a more straightforward monetary accounting compared to the older Spanish system.

What is the current status of gold and silver coins in U.S. circulation?

The U.S. Mint last minted gold coins for general circulation in 1933. The last 90% silver coins were minted in 1964, and the last 40% silver half dollar was minted in 1970, after which circulating coins shifted to base metals or copper-nickel clad compositions.

What is the "strong dollar policy," and what is the debate surrounding it?

The "strong dollar policy" refers to the U.S. government's approach to maintaining the dollar's value in international markets. There is an ongoing debate about whether this policy is truly in the best interest of the United States and the global community.

What are "collector coins" in the context of U.S. currency?

Collector coins are legal tender at their face value but are typically worth significantly more due to their numismatic value or precious metal content. Examples include American Eagle bullion coins and various commemorative coins issued by the U.S. Mint.

How did the U.S. dollar's value change after the Nixon Shock in 1971?

Following President Nixon's decision in 1971 to end the convertibility of dollars to gold (the "Nixon Shock"), the U.S. dollar began to float freely on foreign exchange markets. This marked the end of the Bretton Woods system's gold peg and placed the responsibility for maintaining the dollar's value on the Federal Reserve.

What is the historical context for the term "bits" in American currency usage?

The term "bits" historically referred to the Spanish milled dollar's division into eight reales. Americans became accustomed to counting in "bits," with a "bit" equaling 12.5 cents, a practice that persisted even after the U.S. adopted a decimal currency system.

What is the role of the U.S. Dollar Index (USDX) in measuring currency strength?

The U.S. Dollar Index (USDX) serves as a benchmark to measure the value of the U.S. dollar relative to a weighted basket of six major foreign currencies. It helps track the dollar's performance and strength in the global foreign exchange market.

What are the primary objectives of the Federal Reserve's monetary policy?

The Federal Reserve's monetary policy aims to achieve maximum employment, stable prices (low inflation), and moderate long-term interest rates. These objectives are often referred to as the "dual mandate" and guide the central bank's actions.

What is the difference between "large-sized notes" and "small-sized notes" of U.S. currency?

Large-sized U.S. notes, issued before 1928, measured approximately 7.42 inches by 3.125 inches (188.5 mm x 79.4 mm). Small-sized notes, introduced that year, are significantly smaller, measuring about 6.14 inches by 2.61 inches (155.96 mm x 66.29 mm), and were sometimes called "horse blankets" due to their larger previous dimensions.

What is the historical significance of the Spanish dollar in the context of the U.S. dollar's adoption?

The Spanish dollar, also known as the peso or piece-of-eight, was widely circulated globally from the 16th to the 19th centuries due to abundant silver from Spanish America. Its established reputation and familiar denomination made it the model for the U.S. dollar when the nation established its own currency.

What are the main types of U.S. coins issued for circulation since 1934?

Since 1934, the U.S. Mint has produced only a few denominations for general circulation: the penny (1 cent), nickel (5 cents), dime (10 cents), quarter (25 cents), half dollar (50 cents), and the dollar coin ($1).

What is the role of the U.S. Treasury Department in the issuance of currency?

The U.S. Treasury Department, through the Bureau of Engraving and Printing, prints Federal Reserve Notes, and through the U.S. Mint, stamps coins. These requests for printed money and coins are initiated based on the Federal Reserve's needs to manage the money supply.

What is the historical context of the phrase "not worth a continental"?

The phrase "not worth a continental" originated from the severe depreciation of Continental Currency issued by the Continental Congress during the American Revolution. This currency lost its value due to a lack of backing and uncoordinated monetary policies among the states.

What are the primary functions of the Federal Reserve System?

The Federal Reserve System serves as the central bank of the United States, with key functions including conducting monetary policy, supervising and regulating financial institutions, maintaining the stability of the financial system, and providing financial services to depository institutions.

What is the significance of the U.S. dollar's role as a reserve currency in international transactions?

The U.S. dollar is the most widely used currency in international transactions and serves as the world's foremost reserve currency. This status means it is held in significant quantities by central banks globally and is frequently used in trade and financial dealings worldwide.

United States Dollar Wiki: The Dollar Decoded: A Comprehensive Exploration of U.S. Currency

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Overview

Official Currency

The United States dollar ($; ISO code: USD) is the official currency of the United States and several other sovereign nations. Established by the Coinage Act of 1792, it was initially pegged to the Spanish silver dollar and divided into 100 cents.^[1]

Constitutional Basis

Article I, Section 8 of the U.S. Constitution grants Congress the power to "coin money" and regulate its value. This authority is codified in Title 31 of the U.S. Code, which prescribes the forms of U.S. dollars and coins as legal tender for all debts.^[9] The dollar serves as the nation's unit of account.^[13]

Decimal System

The U.S. adopted a decimal system for its currency, with the dollar divided into 100 cents. While the "mill" (1/1000th) and "dime" (1/10th) were established, only the cent remains a common everyday division, except in specific contexts like fuel pricing where tenths of a cent (mills) are used.^[15]

Historical Evolution

Spanish Dollar Origins

The U.S. dollar's foundation lies in the Spanish milled dollar, widely circulated globally from the 16th to 19th centuries. The Coinage Act of 1792 formalized the U.S. dollar, basing its silver content on assays of these prevalent Spanish dollars.^[16] This historical link influenced the U.S. adoption of a 25-cent coin (quarter) rather than a 20-cent coin, mirroring the Spanish two-real piece.

Bimetallism to Gold Standard

From its inception until 1900, the dollar operated under a bimetallic standard, defined by both silver and gold. The Gold Standard Act of 1900 formally linked the dollar solely to gold, a system that persisted until 1971 when President Nixon severed the dollar's convertibility to gold, ushering in the era of floating exchange rates.^[4]

Federal Reserve and Modern Era

The Federal Reserve Act of 1913 established the Federal Reserve System as the central bank, aiming to provide an elastic currency. Federal Reserve Notes became the sole form of U.S. paper currency in circulation after the 1970s. The post-WWII Bretton Woods Agreement cemented the dollar's role as the world's primary reserve currency.^[74]

Coinage Specifications

Circulating Coins

The U.S. Mint produces circulating coins in denominations of one cent (penny) through one dollar. While dollar coins have historically struggled with public circulation, denominations like the quarter and dime remain ubiquitous.

Denomination	Common name	Portrait/Design	Motif/Design Date	Material	Circulation
Cent 1¢	penny	Abraham Lincoln (1909)	Union Shield (2010)	97.5% Zn, 2.5% Cu	Wide
Five cents 5¢	nickel	Thomas Jefferson (2006)	Monticello (1938)	75% Cu, 25% Ni	Wide
Ten cents 10¢	dime	Franklin D. Roosevelt (1946)	Olive branch, torch, oak branch (1946)	91.67% Cu, 8.33% Ni	Wide
Quarter dollar 25¢	quarter	George Washington (1932)	Various (5 designs per year)	91.67% Cu, 8.33% Ni	Wide
Half dollar 50¢	half dollar	John F. Kennedy (1964)	Presidential Seal (1964)	91.67% Cu, 8.33% Ni	Limited
Dollar coin $1	dollar coin, golden dollar	Sacagawea (2000)	Various (4 designs per year)	88.5% Cu, 6% Zn, 3.5% Mn, 2% Ni	Limited

Note: Images are illustrative placeholders. Actual coin designs may vary.

Collector & Discontinued Coins

Beyond circulating currency, the U.S. Mint produces collector coins in precious metals (gold, silver, platinum, palladium) with face values up to $100, though their market value often exceeds face value. Various other denominations and compositions have been minted throughout history but are no longer in general circulation.

Banknote Denominations

Federal Reserve Notes

Federal Reserve Notes (FRNs) are the modern paper currency of the United States. They are issued by the Federal Reserve Banks and printed by the Bureau of Engraving and Printing. Current denominations range from $1 to $100.

Denomination	Portrait	Reverse Motif	Series	Circulation
One dollar	George Washington	Great Seal of the United States	Series 1963 / 1935	Wide
Two dollars	Thomas Jefferson	Declaration of Independence (Trumbull)	Series 1976	Limited
Five dollars	Abraham Lincoln	Lincoln Memorial	Series 2006	Wide
Ten dollars	Alexander Hamilton	Treasury Building	Series 2004A	Wide
Twenty dollars	Andrew Jackson	White House	Series 2004	Wide
Fifty dollars	Ulysses S. Grant	United States Capitol	Series 2004	Wide
One hundred dollars	Benjamin Franklin	Independence Hall	Series 2009A	Wide

Note: Series dates indicate when the design was first introduced; notes are continuously updated.

Historical Notes & Nicknames

Historically, higher denominations ($500, $1,000, etc.) were printed but discontinued. The term "greenback" originated from Civil War-era notes. Many denominations carry popular nicknames derived from the portraits of presidents or historical figures featured on them.

Monetary Policy

Federal Reserve System

The Federal Reserve System, established in 1913, acts as the central bank of the United States. Its primary mandate is to conduct monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates.^[74]

Policy Tools

The Federal Open Market Committee (FOMC) influences the money supply and credit conditions through tools such as reserve requirements, open market operations (buying/selling government securities), and discount window lending. These actions directly affect interest rates and indirectly influence broader economic activity.^[77]

Dual Mandate

The Federal Reserve's objectives are often referred to as the "dual mandate": maintaining price stability and fostering maximum sustainable employment. This contrasts with earlier gold standard systems where currency value was primarily tied to gold reserves.^[95]

Global Significance

Reserve Currency Ascendancy

Following World War I and II, the U.S. dollar emerged as the world's primary reserve currency, displacing the British pound sterling. The Bretton Woods Agreement of 1944 formalized this status, linking the dollar to gold and establishing it as the cornerstone of the international monetary system.^[75]

International Trade and Finance

The dollar remains the most widely used currency in international transactions and commodity markets. Central banks globally hold substantial dollar reserves, and many countries officially or unofficially adopt it as their currency or peg their own currency to it.^[69]

Exorbitant Privilege

The U.S. government's ability to borrow extensively in its own currency at low interest rates, without facing significant balance of payments crises, is termed its "exorbitant privilege." This stems from the dollar's global dominance and acceptance.^[81]

Value and Inflation

Purchasing Power Decline

Over the long term, the U.S. dollar has experienced significant inflation, leading to a substantial decrease in its purchasing power. From 1774 to 2012, the dollar lost approximately 97% of its buying power, a trend driven by monetary policy and economic factors.^[84]

Buying power of one U.S. dollar compared to 1775 Spanish milled dollar
Year	Equivalent Buying Power
1775	$1.00
1780	$0.59
1790	$0.89
1800	$0.64
1810	$0.66
1820	$0.69
1830	$0.88
1840	$0.94
1850	$1.03
1860	$0.97
1870	$0.62
1880	$0.79
1890	$0.89
1900	$0.96
1910	$0.85
1920	$0.39
1930	$0.47
1940	$0.56
1950	$0.33
1960	$0.26
1970	$0.20
1980	$0.10
1990	$0.06
2000	$0.05
2007	$0.04
2008	$0.04
2009	$0.04
2010	$0.035
2011	$0.034
2012	$0.03

Inflationary Trends

The Consumer Price Index (CPI) measures average changes in prices paid by urban consumers. While the Federal Reserve targets low, stable inflation (around 2%), historical data shows significant value erosion, particularly during wartime and periods of monetary expansion.^[91]

This section requires updating with recent economic data. While historical trends are presented, current inflation figures and their impact on purchasing power would provide valuable context. (April 2024)

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References

Also abbreviated US$ to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck

See Federal Reserve Note Â§ Lawsuit over U.S. banknote design for details and references.

Reports. 31 U.S.C. Â§ 331.

Mehl, B. Max. "United States $50.00 Gold Pieces, 1877", in Star Rare Coins Encyclopedia and Premium Catalogue (20th edition, 1921)

"Ask US." National Geographic. June 2002. p. 1.

Rand, Ayn. [1957] 1992. Atlas Shrugged. Signet. p. 628.

1977â1991

1976â1991

1974â1991, 1993â1995

A full list of references for this article are available at the United States dollar Wikipedia page

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Important Notice

This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is derived from publicly available data and may not be entirely accurate, complete, or up-to-date. It is crucial to consult primary sources and expert analysis for definitive information.

This is not financial advice. The information provided herein is not intended as a substitute for professional financial consultation, investment advice, or tax guidance. Always seek the advice of a qualified financial advisor or professional for any decisions related to your personal finances or investments. Never disregard professional advice or delay in seeking it because of information obtained from this page.

The creators of this page are not responsible for any errors or omissions, or for any actions taken based on the information provided herein.

The Dollar Decoded

💡 Dive in with Flashcard Learning! 💡

Overview 🏛️

🇺🇸 Official Currency

📜 Constitutional Basis

💰 Decimal System

Historical Evolution ⏳

🌍 Spanish Dollar Origins

⚖️ Bimetallism to Gold Standard

🏦 Federal Reserve and Modern Era

Coinage Specifications 🪙

📊 Circulating Coins

💰 Collector & Discontinued Coins

Banknote Denominations 💵

📜 Federal Reserve Notes

💸 Historical Notes & Nicknames

Monetary Policy 📈

🏦 Federal Reserve System

⚙️ Policy Tools

🎯 Dual Mandate

Global Significance 🌍

⭐ Reserve Currency Ascendancy

🌐 International Trade and Finance

💼 Exorbitant Privilege

Value and Inflation 📊

📉 Purchasing Power Decline

📈 Inflationary Trends

Teacher's Corner 🧑‍🏫

Edit and Print this course in the Wiki2Web Teacher Studio

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❓ Test Your Knowledge! ❓

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References

📜 References

Feedback & Support 👍

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Disclaimer ⚠️

📜 Important Notice

Dive in with Flashcard Learning!

Overview

Official Currency

Constitutional Basis

Decimal System

Historical Evolution

Spanish Dollar Origins

Bimetallism to Gold Standard

Federal Reserve and Modern Era

Coinage Specifications

Circulating Coins

Collector & Discontinued Coins

Banknote Denominations

Federal Reserve Notes

Historical Notes & Nicknames

Monetary Policy

Federal Reserve System

Policy Tools

Dual Mandate

Global Significance

Reserve Currency Ascendancy

International Trade and Finance

Exorbitant Privilege

Value and Inflation

Purchasing Power Decline

Inflationary Trends

Teacher's Corner

True or False?

Test Your Knowledge!

Gamer's Corner

Discover other topics to study!

References

Feedback & Support

Disclaimer

Important Notice