The $2 bill. For some, it’s a rare novelty, a forgotten piece of American currency tucked away in a drawer or wallet for good luck. For others, it might evoke memories of a bygone era. But a common question persists: Are Us Bills Still Printed? The answer, perhaps surprisingly, is yes. Despite their infrequent appearance in everyday transactions, the Bureau of Engraving and Printing still produces two-dollar bills.
This often-overlooked banknote is the subject of “The Two Dollar Bill Documentary,” a film that delves into the intriguing history and persistent misconceptions surrounding this uncommon currency. The documentary, by filmmaker John Bennardo, features individuals like Christopher Noe, a senior lecturer at MIT Sloan School of Management, and Erik Mintz EMBA ’13, both of whom share a fascination with the $2 bill.
Video thumbnail
Mintz’s interest was sparked in Noe’s class, leading him to extensive research on the $2 bill and eventually to a role as associate producer in Bennardo’s documentary. The film itself explores the rich history of the $2 bill, aiming to dispel myths and shed light on why this denomination, still in production, remains so rarely seen in circulation.
Why Are $2 Bills So Uncommon?
Despite being legal tender and actively printed, several factors contribute to the $2 bill’s scarcity in daily life:
- Misconceptions of Discontinuation: Many people mistakenly believe the $2 bill is no longer printed or is somehow out of circulation. This misconception alone reduces demand and acceptance in everyday transactions.
- Lower Production Numbers: Compared to the ubiquitous $1 bill, and even higher denominations, the Federal Reserve orders far fewer $2 bills each year. This naturally limits their presence in the money supply.
- Circulation Patterns: When $2 bills are issued, they often get collected rather than re-circulated. Their novelty encourages people to keep them as souvenirs or curiosities, further reducing their active circulation.
- Historical Perception: In some periods of history, the $2 bill faced negative associations, contributing to public reluctance to use or accept them.
The $2 Bill as a Teaching Tool: Fair-Value Accounting
Christopher Noe, featured in the documentary, utilizes the $2 bill in a unique way – as a practical example in his accounting classes. He uses his own bicentennial $2 bill, a keepsake from his childhood, to illustrate the concept of fair-value accounting.
Fair-value accounting, as defined by the International Accounting Standards Board, represents “an amount at which an asset could be exchanged between knowledgeable and willing parties in an arm’s length transaction.” This concept, often debated against historical-cost accounting, can be abstract for students.
Noe’s $2 bill provides a tangible, relatable example. He recounts a class where, by asking students the “worth” of his 1976 bill, he initiated a discussion about its face value versus its potential collectible value.
Illustrating Fair Value vs. Historical Cost
In his classes, Noe poses the question: what is the balance sheet value of his nearly 40-year-old $2 bill? While its face value is undeniably $2, students quickly discover online marketplaces like eBay list similar bills for significantly more – around $8 or more.
This simple scenario perfectly highlights the core of fair-value accounting. Is the bill worth its historical cost of $2, or its current “fair value” as a collectible, perhaps $8? The answer, as Noe explains, is “it depends.” This ambiguity and the need to consider current market conditions are central to understanding fair-value accounting.
The Sentimental Value Beyond Face Value
Beyond its utility in finance education and its intriguing history, the $2 bill can also hold significant personal value. Noe shares a poignant story in the documentary about his father, who unexpectedly passed away and left him an envelope containing seven $2 bills, specifically addressed “For Chris.”
This discovery revealed a hidden sentimental gesture, a father’s quiet act of saving these uncommon bills for his son. Noe, in turn, has passed on this sentiment to his own sons, giving each a $2 bill, creating a chain of personal history linked to this humble banknote.
In conclusion, while you might not encounter them every day, $2 bills are indeed still printed by the US Bureau of Engraving and Printing. Their uncommon nature adds to their mystique, making them not just currency, but also objects of curiosity, educational tools, and even carriers of personal stories and sentimental value, far exceeding their face value.
