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. Paper Money

    A country's official, paper currency that is circulated for transaction-related ...
  4. Anti Money Laundering - AML

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

    An officially-issued legal tender generally consisting of currency ...
  6. Hard Money

    1. Funding by a government or organization that is repetitive, ...
Related Articles
  1. Forex Education

    The History Of Money: Currency Wars

    Find out how conflicts have changed the role money plays in our lives.
  2. Fundamental Analysis

    Understanding The Federal Reserve Balance Sheet

    We are all connected to the Fed's balance sheet, and the currency notes that we hold are its liabilities.
  3. Forex Education

    The History Of Money: From Barter To Banknotes

    Money has been a part of human history for at least 3,000 years. Learn how it evolved.
  4. Forex

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

    On February 3, 1690, the Massachusetts Bay Colony issued the first paper money in the U.S., in order to pay for its war. Massachusetts was a truly pioneering colony when it came to money. They ...
  5. Fundamental Analysis

    What's a Tangible Asset?

    Tangible assets are property owned by a business that can be touched -- they physically exist. Examples include furniture and fixtures, computer hardware, delivery equipment, leasehold improvements ...
  6. Fundamental Analysis

    Cash Flow From Operating Activities

    Cash flow from operating activities is a section of the Statement of Cash Flows that is included in a company’s financial statements after the balance sheet and income statements.
  7. Fundamental Analysis

    What are the components of shareholders' equity?

    Understanding company valuation figures, such as shareholders' equity, can be a powerful tool in assessing the financial strength of a business.
  8. Fundamental Analysis

    What is the difference between the acid test ratio and working capital ratio?

    Using liquidity ratios to determine the financial stability of a company is an important tool to accounting professionals and investors.
  9. Fundamental Analysis

    What are some examples of return on investment capital?

    Read about some basic examples of return on investment capital for publicly traded companies and companies that have a handful of investors.
  10. Bonds & Fixed Income

    What is the difference between the yield of stock and the yield of a bond?

    Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond investments.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center