Banknote

Banknote is also known as a bill, paper money or fiat money. Banknote is a note issued by government or bank, which is licensed by authorities and broadly accepted by market participants. Banknotes are called fiat money, as they are not backed by any commodity, as it used to be during the gold standard. Banknote can be used to participate in market activities and exchange the note for goods and services as a method of payment. Different countries have their own banknotes that were issued and legally approved by the government of that country. Banknotes might have different value depending on the economy of the country. Each country has its own banknotes, and not all banknotes of one country are accepted as a method of payment in another country. Banknotes of one country can be exchange for banknotes on another country using currency exchange rate.

References

• Wray L. R. (2012), Introduction to an Alternative History of Money. Levy Economics Institute, working paper No 717.
• Solomon D. and Spurling T. (2014), The Plastic Banknote: From Concept to Reality. CSIRO Publishing, Australia, Collingswood.
• Lannoye V. (2015), The History of Money for Understanding Economics, Vincent Lannoye.

Author: Nikita Shtemenko