Worn Currency

AAA

DEFINITION of 'Worn Currency'

Currency notes that are torn, damaged or badly soiled. Banks separate such currency notes daily from the amounts that they collect from the public and exchange them for crisp new bills at the Federal Reserve Bank.

INVESTOPEDIA EXPLAINS 'Worn Currency'

Worn currency notes are assessed by the Federal Reserve Bank,which reviews the notes and determines whether they can be recirculated or should be retired from the money system. The Federal Reserve destroys worn currency notes at some of its banks located throughout the country.

RELATED TERMS
  1. Barter

    The act of trading goods and services between two or more parties ...
  2. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  3. Hard Money

    1. Funding by a government or organization that is repetitive, ...
  4. Money

    An officially-issued legal tender generally consisting of currency ...
  5. Anti Money Laundering - AML

    A set of procedures, laws or regulations designed to stop the ...
  6. Paper Money

    A country's official, paper currency that is circulated for transaction-related ...
Related Articles
  1. The History Of Money: Currency Wars
    Forex Education

    The History Of Money: Currency Wars

  2. Understanding The Federal Reserve Balance ...
    Fundamental Analysis

    Understanding The Federal Reserve Balance ...

  3. The History Of Money: From Barter To ...
    Forex Education

    The History Of Money: From Barter To ...

  4. When did the U.S. start using paper ...
    Forex

    When did the U.S. start using paper ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center