Summary of the Article

question 115

Multiple Choice

Summary of the article:
Funny money no laughing matter in recession
By Alex Johnson
msnbc.com
August 7, 2009
According to the U.S. Secret Service, during a three-month period in 2009 as much as $60,000 in counterfeit
currency had been spread throughout central North Carolina. Before being arrested by sheriffʹs deputies, two
teenagers were believed to be responsible for creating hundreds of $100 bills which fooled not only shop
owners and bank tellers, but also were undetectable with counterfeit-detecting iodine pens. Law enforcement
officials have reported an increase in counterfeit currency since the beginning of the most recent recession. In
addition to North Carolina, a number of counterfeit bills have turned up in Pennsylvania, Florida and
Indiana, and Texas.
The Secret Service states that counterfeiting is not a major issue, and estimates that only three-tenths of one
percent of all currency in circulation is counterfeit, but this is three times greater than just ten years ago.
Based on the Secret Service estimates and the Federal Reserveʹs calculation of paper money in circulation in
June 2009, approximately $2.6 billion in U.S. paper currency would be counterfeit. Some believe the number
is even higher since counterfeiters generally produce larger denomination bills, preferring to produce $20s,
$50s, and $100s.
The estimates of counterfeit currency in circulation are strictly estimates, as the Secret Service and law
enforcement officials admit that it is impossible to obtain an exact measurement of counterfeiting, especially
since successful counterfeit bills remain undetected.
-Undetected counterfeit currency which is spent and circulated in the marketplace is an example of the counterfeit currency being used as a

• A)medium of exchange.
• B)commodity money.
• C)store of value.
• D)bank reserve.

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