Editing Federal Reserve Note (section)

==Production and distribution==
A [[commerce|commercial]] bank that maintains a reserve account with the Federal Reserve can obtain notes from the Federal Reserve Bank in its district whenever it wishes. The bank must pay the face value of the notes by debiting (drawing down) its reserve account. Smaller banks without a reserve account at the Federal Reserve can maintain their reserve accounts at larger "correspondent banks" which themselves maintain reserve accounts with the Federal Reserve.<ref name="distribution"/>

Federal Reserve Notes are printed by the [[Bureau of Engraving and Printing]] (BEP), a bureau of the Department of the Treasury.<ref>{{cite web|author=United States Department of the Treasury|author-link=United States Department of the Treasury|url=http://www.ustreas.gov/organization/org-chart-122005.pdf |title=Organization chart of the Department of the Treasury |access-date=February 17, 2008 |archive-url=https://web.archive.org/web/20080216090638/http://www.ustreas.gov/organization/org-chart-122005.pdf |archive-date=February 16, 2008}}</ref> When Federal Reserve Banks require additional notes for circulation, they must post [[collateral (finance)|collateral]] in the form of direct federal obligations, private bank obligations, or assets purchased through [[open market operations]].<ref name="USC.12.412"/> If the notes are newly printed, they also pay the BEP for the cost of printing (about 4¢ per note). This differs from the issue of [[coin]]s, which are purchased for their face value.<ref name="distribution">{{cite web|author=Federal Reserve Bank of New York|author-link=Federal Reserve Bank of New York|date=April 2007 |url=http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html|title=How Currency Gets into Circulation|access-date=February 17, 2008}}</ref>

A Federal Reserve Bank can retire notes that return from circulation, which entitles it to recover collateral that it posted for an earlier issue. Retired notes in good condition are held in the bank's vault for future issues.<ref>{{usc|12|416}}</ref> Notes in poor condition are destroyed<ref>{{usc|12|413}}</ref> and replacements are ordered from the BEP. The Federal Reserve shreds 7,000 tons of worn out currency each year.<ref>{{cite web|work=Fleur-de-coin.com|url=http://www.fleur-de-coin.com/coinfacts/unitedstates_3.asp|title=US Coin Facts|access-date=February 16, 2018}}</ref>

As of 2018, Federal Reserve notes remain, on average, in circulation for the following periods of time:<ref>{{cite web | author=Federal Reserve System | date=December 2018 | url=https://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm | title=How long is the life span of U.S. paper money? | access-date=November 4, 2021}}</ref>

{|class="wikitable"
|-
| style="text-align:left" | '''Denomination'''
| style="width:2.3em; text-align:center"| $1
| style="width:2.3em; text-align:center"| $2
| style="width:2.3em; text-align:center"| $5
| style="width:2.3em; text-align:center"| $10
| style="width:2.3em; text-align:center"| $20
| style="width:2.3em; text-align:center"| $50
| style="width:2.3em; text-align:center"| $100
|-
| style="text-align:left" | '''Years in circulation'''
|style="text-align:center"| 6.6
|style="text-align:center"| ''no&nbsp;data''
|style="text-align:center"| 4.7
|style="text-align:center"| 5.3
|style="text-align:center"| 7.8
|style="text-align:center"| 12.2
|style="text-align:right"| 22.9
|}

The [[Federal Reserve Bank|Federal Reserve]] does not publish an average life span for the $2 bill. This is likely due to its treatment as a collector's item by the general public; it is, therefore, not subjected to normal circulation.<ref name="USPaperMoney.info-1969">{{cite web|website=USPaperMoney.info|url=http://www.uspapermoney.info/history/1969.html|title=History of Currency Designs |access-date=February 19, 2008}}</ref>

Starting with the Series 1996 $100 note, bills $5 and above have a special letter in addition to the prefix letters which range from A to Q.<ref>{{cite web | url=https://www.bep.gov/currency/serial-numbers | title=Serial Numbers &#124; Engraving & Printing }}</ref> The first letter is A for Series 1996, B for Series 1999, C for Series 2001, D for Series 2003, F for Series 2003A, H for Series 2006, K for Series 2006A, J for Series 2009, M for Series 2013, N for Series 2017, P for Series 2017A,<ref name="uspapermoney.info">{{cite web |url=http://www.uspapermoney.info/general/number.html |website=USPaperMoney.info |title=Details of Serial Numbering |access-date=February 16, 2015}}</ref> and Q for series 2021. <ref>{{cite web | url=https://www.bep.gov/currency/serial-numbers | title=Serial Numbers &#124; Engraving & Printing }}</ref>

The Series 2004 $20, the first note in the second redesign, has kept the element of the special double prefix. The first letter is E for Series 2004, G for Series 2004A, I for Series 2006, J for Series 2009, L for Series 2009A, and M for Series 2013.<ref name="uspapermoney.info"/>

Federal Reserve Notes are made of 75% cotton and 25% linen fibers, supplied by [[Crane Currency]] of [[Dalton, Massachusetts]] specifically for that purpose.<ref name=":1">{{Cite web|url=https://www.bep.gov/currency/how-money-is-made|title=The Buck Starts Here: How Money is Made|website=www.bep.gov|publisher=US Department of the Treasury Bureau of Engraving and Printing |access-date=June 25, 2022}}</ref>