Each dollar bill has the words "Federal Reserve Note" in big type at the top. That is because they represent debt of the federal reserve. The bureau of printin

Each dollar bill has the words "Federal Reserve Note" in big type at the top. That is because they represent debt of the federal reserve. The bureau of printing and engraving prints them for the federal reserve to hand out and is reimbursed for the cost of printing by the federal reserve. Federal reserve notes have the very handy attribute in that they are the only currency that can be used to settle U.S tax liabilities.