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How does the government distinguish counterfeit money from real money?

my teacher gave me this homework to do: research counterfeit money and list methods the government uses to distinguish between counterfeit money and real bills. can you guys list at least 3 ways the government distinguishes fake money from real money?

Public Comments

1. that it a federal crime and you can get life in prison if convected if it doesn't have a watermark.
2. paper money is counterfeit money