Money and

Negotiable Instruments

Presented by
Alka Mehta , Center for
Professional Development
Kari Jordahl,
Instructional Design Consultant

Introduction
Credit union members trust their credit union to
take good care of their money. Your credit unions
reputation depends on the ability of employees to
handle cash transactions safely and accurately.
The term negotiable instrument refers to
financial documents that represent cash and can be
converted to cash upon demand. The most common
forms of negotiable instruments are checks and
drafts, written by individuals and businesses.
Members may use other forms as well, including
money orders, cashiers checks, certified checks
and drafts, and travelers checks. These specialized
checks guarantee the payee that the amount will
be paid on demand.

Cash
As Americans rely increasingly on debit and credit
cards, will we see a cashless society some day?
That seems unlikely. Cash is still a common and
convenient way to make purchases. Unlike debit
and credit cards, cash is accepted everywhere. Some
people prefer to pay in cash because it ensures their
privacythey dont have to give names or show
identification.
As a credit union employee, you must be familiar
with the designs and features of U.S. currency. Paper
money has undergone many design changes. There
were major redesigns of Federal Reserve notes in the
1990s, and again in 2004, primarily to make it more
difficult to forge paper currency. Only the one- and
two- dollar bills remain much the same, because
those notes are rarely counterfeited.

Objectives
In this Training on Demand course, you will learn
how to prevent fraud with proven methods for
detecting counterfeit money and recognizing bad
checks. You will learn how to improve efficiency
and accuracy by understanding the methods for
handling cash and accepting deposits, as well as
handling share drafts and travelers checks.
The objectives for this course are to:
Describe security features to identify
counterfeit bills;
Describe the methods for handling cash and
accepting deposits to improve efficiency and
accuracy;
Identify common signs of bad checks;
Describe proven methods for preventing fraud;
and
Describe the precautions you must take in
handling share drafts and travelers checks.

Keep in mind that older versions of all notes

remain in circulation. The Federal Reserve removes
bills with older designs from circulation as they
wear out, but you will still encounter those bills,
so you must be able to identify them as authentic
currency.

How Can You Identify

Counterfeit Bills?
Lets start by focusing on cash and some of the
issues with cash which include counterfeiting.
In the past, counterfeiters needed access to
elaborate printing and engraving equipment.
With the widespread availability of digital
scanners, color copiers, and printers, counterfeiting
is easier than it once was. In fact, Secret Service
agents have dubbed counterfeit bills P-notes since
they are often generated with computers and inkjet
printers.
There are several features and materials used in
new currency that help to thwart counterfeiters.
Paper texture and fibers;
Portrait printing quality;
Printing details;
Security thread;
Microprinting;
Watermark; and
Color features.