FR3054_20260122_omb_B

Supporting Statement Part B for the
United States Currency Program Surveys
(FR 3054; OMB No. 7100-0332)
Summary
For all information collections that involve surveys or require a statistical methodology,
the Board of Governors of the Federal Reserve System (Board) is required to provide a complete
justification and explanation of the use of such a methodology. For collections that employ
surveys without such a methodology, the Board should be prepared to justify its decision not to
use statistical methods in any case where such methods might reduce burden or improve
accuracy of results.
Background
The Board oversees the Federal Reserve Banks’ provision of financial services to
depository institutions; develops policies and regulations to foster the efficiency and integrity of
the U.S. payment systems; works with other central banks and international organizations to
improve the payment systems more broadly; conducts research on payments issues; and works
closely with the Bureau of Engraving and Printing (BEP) and U.S. Secret Service (USSS) on
currency design, quality issues, and to educate the global public on the security features of
Federal Reserve notes. Board officials serve on the Advanced Counterfeiting Deterrence group
(ACD), an interagency working group that is responsible for maintaining the security of U.S.
currency. As a member of the ACD, the Board supports the BEP in the design of U.S. currency
by providing critical data on the use, usability, perception, and circulation of Federal Reserve
notes globally.
The Board periodically gathers data from various groups (including financial and
nonfinancial institutions, banknote equipment manufacturers (BEMs), and global wholesale
banknote dealers) regarding demand for currency and coin, the quality and functionality of
banknotes, the public’s perceptions of security features and design characteristics, and how the
public uses currency. These data are considered particularly essential when (1) critical economic
changes occur, (2) the BEP encounters production problems and banknotes do not meet quality
standards, (3) new banknote designs are under consideration, (4) issues of immediate concern
arise from Federal Reserve System committee initiatives working on banknote security and
issuance, or (5) Congress enacts new or revised legislation that impacts currency production,
currency issuance, or coin distribution.
In support of the Board’s currency recirculation policy, FedCash Services (FCS) monitors
the quality of currency by analyzing data on banknotes processed at Federal Reserve Banks each
month. Once a year, the FCS randomly selects depository institutions that have deposit accounts
with Federal Reserve Banks to voluntarily submit, as part of their normal deposits, currency that
is unsorted from their commercial customers, in order to assess the validity of the monthly
monitoring and the quality of currency in circulation.

Universe and Respondent Selection
Long-form Currency Program Surveys (FR 3054a)
The sample selection for the FR 3054a will vary with each iteration of the information
collection. The proposed approach for the FR 3054a would be to conduct the collection up to 10
times per year, reaching out to up to 400 respondents. Target respondents for the FR 3054a are
primarily individuals, but collections may be deployed to financial institutions, retailers, or law
enforcement entities. Respondents will be selected based either on their business relationship
with the Federal Reserve System, or as identified by a market research firm. The Federal Reserve
System cannot predict what specific information would be needed because such needs are
generally non-recurring and time sensitive. Private firms may be utilized for the FR 3054a, in
which case the firm would be responsible for developing and testing proposed collection
procedures, following a sampling protocol which would be established by the Federal Reserve
System before the collection is administered, conducting the collection as specified by the
Federal Reserve System, preparing data files containing the responses, computing analysis
weights, and documenting all collection procedures.
Currency Quality Sampling Survey (FR 3054b)
The FR 3054b is conducted on an annual basis. The Board analyzes the quality of
currency processed at all Federal Reserve Banks and randomly selects 500 respondents whose
deposits reflect the average quality of processed currency.
Currency Quality Survey (FR 3054c)
The FR 3054c would be conducted twice per year, once with depository institutions and
once with banknote equipment manufacturers. Fewer than 20 depository institutions may be
selected from the Federal Reserve’s cash customer advisory council, a universe of 20 entities.
Fewer than ten BEMs may be selected from the Federal Reserve’s United States Cash Machine
Group, a universe of less than 150 entities.
Currency Functionality and Perception Survey (FR 3054d)
The FR 3054d would be conducted five times a year with BEMs to prepare for and
participate in discussions with the Board, BEP, CTO, or USSS. BEMs may be selected from the
Federal Reserve’s United States Cash Machine Group, a universe of less than 150 entities.
Long-form Currency Education Usability Surveys (FR 3054e)
The FR 3054e would be conducted approximately ten times per year with a respondent
pool of up to 250 respondents. Respondents will primarily be individuals, but the FR 3054e may
request responses from specific stakeholder groups such as educators or cash handling entities
(e.g. depository institutions or retailers) to support the development of new education materials
and resources for these groups.

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Short-from Currency Program Surveys (FR 3054f)
The FR 3054f would be conducted approximately ten times per year with a respondent
pool of up to 5,000 respondents. Target respondents for the FR 3054f are primarily individuals,
but surveys may be deployed to financial institutions, retailers, or law enforcement entities.
Respondents will be selected based either on their business relationship with the Federal Reserve
System, or as identified by a market research firm. The Federal Reserve System cannot predict
what specific information would be needed because such needs are generally non-recurring and
time sensitive. Private firms may be utilized for the FR 3054f, in which case the firm would be
responsible for developing and testing proposed survey procedures, following a sampling
protocol which would be established by the Federal Reserve System before the survey is
administered, conducting the survey as specified by the Federal Reserve System, preparing data
files containing the responses, computing analysis weights, and documenting all survey
procedures.
Short-form Currency Education Usability Surveys (FR 3054g)
The FR 3054g would be conducted approximately ten times per year with a respondent
pool of up to 4,000 respondents. Respondents will primarily be individuals, but the Short-Form
survey may request responses from educators or cash handling entities (e.g. depository
institutions or retailers) to support the development of new education materials and resources for
these stakeholder groups. Private firms may be utilized for the FR 3054g, in which case the firm
would be responsible for developing and testing proposed survey procedures, following a
sampling protocol which would be established by the Federal Reserve System before the survey
is administered, conducting the survey as specified by the Federal Reserve System, preparing
data files containing the responses, computing analysis weights, and documenting all survey
procedures.
Procedures for Collecting Information
Surveys could be administered online, over the phone, or in person. Long-form
information collections could be completed through in-depth interviews, focus groups, or guided
observational inquiries.
Methods to Maximize Response
Long-form Currency Program Surveys (FR 3054a)
Methods to maximize response rates will vary with each information collection, but
generally it is expected that each collection will receive about a 60 percent response rate, which
is adequate to the purposes of the collection.

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Currency Quality Sampling Survey (FR 3054b)
The Board anticipates a 60 percent response rate, which is adequate to the purposes of the
collection. Should response rate not yield statistically reliable data, additional responses may be
solicited from the initial inquiry.
Currency Quality Survey (FR 3054c)
The Board selects depository institutions from the Federal Reserve System’s cash
advisory council and banknote manufacturers from the Federal United States Cash Machine
Group. Because their businesses are directly affected by currency designs and currency quality,
the Federal Reserve anticipates a 100 percent response rate.
Currency Functionality and Perception Survey (FR 3054d)
Participants in the FR 3054d are banknote equipment manufacturers selected from the
Federal Reserve’s United States Cash Machine Group (the same audience as described in
FR 3054c). Because their businesses are directly affected by currency designs, the Board
anticipates a 100 percent response rate.
Long-form Currency Education Usability Surveys (FR 3054e)
Methods to maximize response rates will vary with each information collection, but
generally it is expected that each collection will receive about a 60 percent response rate, which
is adequate to the purposes of the collection.
Short-form Currency Program Surveys (FR 3054f)
Methods to maximize response rates will vary with each information collection, but
generally it is expected that each survey will receive about a 60 percent response rate, which is
adequate to the purposes of the collection.
Short-form Currency Education Usability Surveys (FR 3054g)
Methods to maximize response rates will vary with each information collection, but
generally it is expected that each survey will receive about a 60 percent response rate, which is
adequate to the purposes of the collection.
Testing of Procedures
There has been no pretesting of procedures for these surveys. Methods for previous
surveys have varied depending on the collection goals.

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