Library

Paper money of U.S.A. (9)

Banknote

Grading of World Paper Money

Hell bank notes

Paper money collecting as a hobby

Polymer banknotes and other non paper bills

Used banknotes

Banknote

A banknote (more commonly known as a bill in the United States and Canada) is a kind of negotiable instrument, a promissory note made by a bank payable to bearer on demand, used as money, and under many jurisdictions is used as legal tender. With coins, banknotes make up the cash forms of all modern money. With the exception of non-circulating high-value or precious metal commemorative issues, coins are generally used for lower valued monetary units, while banknotes are used for higher values.

Originally, the value of money was determined by the intrinsic value of the material the money was made of, such as silver or gold. However, carrying around a lot of precious metal was cumbersome and often dangerous. As an alternative, banknotes would be issued. In financial terms, a note is a promise to pay someone money. Banknotes were originally a promise to pay the bearer an amount of precious metal stored in a vault somewhere. In this way the stored value (usually in gold or silver coins) backing the banknote could transfer ownership in exchange for goods or services.