Answer:
Treasury Department regulations prohibit the manufacture, distribution or use of "full-sized" replica money. You can, however, create "funny money" that has the same dimensions as "real money" if it doesn't replicate actual currency and can't possibly be confused with the "real" stuff.
You can create your own "funny money" using a desktop publishing program -- and visit a teacher's store. These stores often carry "funny money" that teachers use in classroom exercises.
First published on BankersOnline.com 12/3/01