NGC Paper Currency & Banknote Grading 2 — Questions and Answers
Question 1: In PMG grading, what term describes a note that shows clear signs of handling but retains most of its original brightness and only minor folds?
- Very Fine (VF)
- Extremely Fine (EF)
- Choice Fine (CF)
- About Uncirculated (AU) (Correct answer)
Correct answer: About Uncirculated (AU)
About Uncirculated (AU) notes show slight evidence of circulation but retain nearly all original crispness and brightness.
Question 2: Which feature on a US Federal Reserve Note helps authenticate it and is visible only under ultraviolet light?
- Microprinting on the border
- Security thread with UV-fluorescent ink (Correct answer)
- Color-shifting ink on the numeral
- Watermark portrait
Correct answer: Security thread with UV-fluorescent ink
Modern US Federal Reserve Notes contain a plastic security thread embedded in the paper that glows under UV light as an anti-counterfeiting measure.
Question 3: A banknote graded PMG 64 EPQ carries the EPQ designation, which stands for what?
- Enhanced Paper Quality
- Exceptional Paper Quality (Correct answer)
- Excellent Print Quality
- Extended Preservation Quality
Correct answer: Exceptional Paper Quality
EPQ stands for Exceptional Paper Quality, indicating the note has original paper, original color, and no restoration.
Question 4: When grading paper currency, 'foxing' refers to which type of defect?
- Small rust-colored spots caused by fungal or oxidation damage (Correct answer)
- Ink transfer from a stored note to the facing note
- A fold deliberately placed by a collector
- Fading along the note's edges from light exposure
Correct answer: Small rust-colored spots caused by fungal or oxidation damage
Foxing describes brownish or reddish spots caused by mold, fungus, or oxidation on the paper surface of a banknote.
Question 5: What does the term 'centering' refer to when evaluating a banknote's grade?
- Whether the serial numbers are balanced left to right
- The alignment of the printed design relative to the note's margins (Correct answer)
- The position of the security thread within the paper
- How evenly the ink is distributed across the face
Correct answer: The alignment of the printed design relative to the note's margins
Centering describes how well the printed design is centered within the margins on both the face and back of the note.
Question 6: Which US large-size note denomination issued before 1929 is most commonly collected in high grades due to its later printing date and better preservation?
- $1 Silver Certificate Series 1923 (Correct answer)
- $500 Federal Reserve Note Series 1914
- $2 Legal Tender Series 1917
- $10 Gold Certificate Series 1907
Correct answer: $1 Silver Certificate Series 1923
The $1 Silver Certificate Series 1923 ('Funnyback') was printed in large quantities late in the large-size era and survives more frequently in high grades.
Question 7: In banknote grading, what is meant by 'original skin'?
- The original unaltered paper surface without cleaning or pressing (Correct answer)
- The plastic sleeve applied by the grading company
- A thin protective coating applied during printing
- The outer layer of a two-ply security paper
Correct answer: The original unaltered paper surface without cleaning or pressing
Original skin refers to the natural, unaltered surface of the banknote paper that has not been cleaned, pressed, or chemically treated.
NGC Paper Currency & Banknote Grading 2
In PMG grading, what term describes a note that shows clear signs of handling but retains most of its original brightness and only minor folds?