How do vending machines figure out if coins are fake or not?

I always wondered this; and I think the machines used to be less sophisticated.
Also---the second half is sort of cool---on how the snacks are dispensed and measured. Feedback design (the beams the falling snack breaks) should ensure that you always get what you paid for with your (real) coins.

I wonder how bill detectors work?

From the Science Channel...

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