How does a vending machine recognize dollar bills?

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always wondered..
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While vending machines use a variety of methods to read bills, they check four different characteristics used to verify paper money:

Bills are printed with magnetic ink, and different denominations generate distinctive magnetic fields.
Bills have different conductivities (the rate at which they can conduct low levels of electricity).
Ultraviolet scanning technology can determine the different fluorescent properties of bills.
Digital cameras can reference the optical patterns in bills with a database of authentic patterns.
 
wow, very informative FREQUENTFLYE

now, im wondering how are dollar bills made?
 
Dollar bills are made of a wood pulp that contains Crane brand of paper, cloth including cotton, silk, and linen. This special paper and cloth mixture is knownas "rag." Red and blue fibers are cut up into small pieces and inserted into the paper and cloth mixture to create texture and variety in the bill soit is difficult to counterfeit. Dollar bills are printed carefully with ink and are screened for mistakes before their release into the economy.
 
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