Banknote Definition

Banknote is a negotiable promissory note issued with a bank and payable to the bearer on demand. The quantity payable is stated about the face of the observe. Banknotes are considered appropriate tender, and, along having coins, make up the bearer forms of all modern money. Country wide banknotes are legal sensitive, meaning that medium regarding payment is allowed legally or recognized by a legal system to become valid for meeting the financial obligation. Historically, banks sought to ensure that they could always fork out customers in coins whenever they presented banknotes for repayment.