The
United States dollar (
sign:
$;
code:
USD) is the unit of
currency of the
United States. The U.S. dollar is normally abbreviated as the
dollar sign,
$, or as
USD or
US$ to distinguish it from other
dollar-denominated currencies and from others that use the $ symbol. It is divided into 100
cents (200
half-cents prior to 1857).
Overview
The U.S. dollar bill uses the decimal system, consisting of 100 equal cents (symbol ¢). In another division, there are 1,000
mills or ten
dimes to a dollar, or 4 quarters to a dollar. However, only cents are in everyday use as divisions of the dollar; "dime" is used solely as the name of the
coin with the value of 10¢, while "eagle" and "mill" are largely unknown to the general public, though mills are sometimes used in matters of
tax levies and
gasoline prices. When currently issued in circulating form, denominations equal to or less than a dollar are emitted as
U.S. coins while denominations equal to or greater than a dollar are emitted as
Federal Reserve notes (with the exception of gold, silver and platinum coins valued up to $100 as legal tender, but worth far more as bullion). Both one-dollar coins and notes are produced today, although the note form is significantly more common. In the past, "paper money" was occasionally issued in denominations less than a dollar (
fractional currency) and gold coins were issued for
circulation up to the value of
$20 (known as the "double eagle," discontinued in the 1930s). The term
eagle was used in the
Coinage Act of 1792 for the denomination of ten dollars, and subsequently was used in naming
gold coins. In 1854,
James Guthrie, then
Secretary of the Treasury, proposed creating $100, $50 and $25 gold coins, which were referred to as a "Union," "Half Union," and "Quarter Union,"
[3] thus implying a denomination of 1 Union = $100.