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The seals on $1 and $2 bills include the Federal Reserve District letter, which identifies which of the 12 districts distributed the bill.

Many people assume that the bills are actually printed in that district, but in fact all US bills are printed at facilities of the Bureau of Engraving and Printing in either Washington or Fort Worth. The BEP takes orders from each Federal Reserve district, prints bills with that district's seal, and sends them back to the district's central banking repository for distribution through commercial banks.

Higher-denomination bills no longer have the district letter in the seal, but instead it's incorporated as part of the bill's serial number.

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Q: What does the Federal Reserve seal tell on a one dollar bill?
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