Five-dollar bills are the next most popular note with 10s, 50s and 100s following in that order. The Federal Reserve attempts to maximize the use of fit currency. New bills are provided by the U.S. Bureau of Engraving at a cost of 3 cents per bill, regardless of denomination. Banks do not pay for new bills, so this cost is passed on to taxpayers. The cost may rise, especially if the Bureau instigates new anti-counterfeit measures that may include embedding a horizontal thread in each bill which would be visible when held to the light.
Most currency is subjected to brisk circulation.
The Fed initiated a study last year in which it surveyed bankers and citizens about the quality of currency. The results showed that 20 percent to 30 percent of the notes received by banks would not pass the Fed's standards for fit currency. The average life of a one-dollar bill is 18 months, with all other denominations lasting longer. Appropriate disposal of shredded money is an important issue for the Money Department. The U.S. Treasury enforces precise regulations about shredding.