bank note
Quick Summary
A banknote is a piece of printed paper that functions as money. It is essentially a promissory note issued by a bank, payable on demand and accepted as legal tender. Historically, the concept of paper money originated in China during the 9th century, evolving from merchant drafts into government-issued currency.1234
The development of banknotes allowed bankers to extend credit more easily, as widespread use of bank money meant that withdrawals were often offset by new deposits. Central banks today are typically the sole issuers of paper currency, which is a form of fiat money—meaning it is not backed by a physical commodity like gold or silver. This monopoly gives central banks significant influence over the money supply and economic stability.4567
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- bankThe development of banknotes
Although the Bank of England is usually credited with being the source of the Western world’s first widely circulated banknotes, the Stockholms Banco (Bank of Stockholm, founded in 1656 and the predecessor of the contemporary Bank of Sweden) is known to have issued banknotes…
Read MoreAlthough the Bank of England is usually credited with being the source of the Western world’s first widely circulated banknotes, the Stockholms Banco (Bank of Stockholm, founded in 1656 and the predecessor of the contemporary Bank of Sweden) is known to have issued banknotes…
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moneyPaper money…19th centuries paper money and banknotes had spread to other parts of the world. The bulk of the money in use came to consist not of actual gold or silver but of fiduciary money—promises to pay specified amounts of gold and silver. These promises were initially issued by individuals or…
Read More…19th centuries paper money and banknotes had spread to other parts of the world. The bulk of the money in use came to consist not of actual gold or silver but of fiduciary money—promises to pay specified amounts of gold and silver. These promises were initially issued by individuals or…
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- specie payment
paper money by banks or the Treasury in metallic (usually gold) coin.
Read Morepaper money by banks or the Treasury in metallic (usually gold) coin.
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United StatesState politics…finance led to emissions of paper money. In several states these were resumed after the war, and, since they tended (though not invariably) to depreciate, they led directly to fierce controversies. The treatment of loyalists was also a theme of intense political dispute after the war. Despite the protests of…
Read More…finance led to emissions of paper money. In several states these were resumed after the war, and, since they tended (though not invariably) to depreciate, they led directly to fierce controversies. The treatment of loyalists was also a theme of intense political dispute after the war. Despite the protests of…
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ChinaCoinage of ChinaPaper money was used for various kinds of payments and grants by the government, but it was always nonconvertible and, consequently, lost value disastrously. It would in fact have been utterly valueless, except that it was prescribed for the payment of certain types of taxes.…
Read MorePaper money was used for various kinds of payments and grants by the government, but it was always nonconvertible and, consequently, lost value disastrously. It would in fact have been utterly valueless, except that it was prescribed for the payment of certain types of taxes.…
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renminbiBanknotes are issued in denominations from 1 fen to 100 renminbi. The obverse of some banknotes contains images of communist leaders, such as Mao Zedong, leader of China’s communist revolution, whose likeness is pictured on several notes; lower denominations often contain images of people dressed…
Read MoreBanknotes are issued in denominations from 1 fen to 100 renminbi. The obverse of some banknotes contains images of communist leaders, such as Mao Zedong, leader of China’s communist revolution, whose likeness is pictured on several notes; lower denominations often contain images of people dressed…
Read More- ChinaSong culture
The government first permitted printed paper money for limited regional circulation and then authorized it as nationwide legal tender. (China was the first country to do so.)
Read MoreThe government first permitted printed paper money for limited regional circulation and then authorized it as nationwide legal tender. (China was the first country to do so.)
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Kublai KhanSocial and administrative policy…Polo’s account—for his use of paper money. Paper money had, however, been issued in China under the Song, and Kublai’s innovation was merely to make it the sole medium of exchange. Toward the end of the dynasty, an incapable financial administration stimulated inflation by the overissue of paper money, but…
Read More…Polo’s account—for his use of paper money. Paper money had, however, been issued in China under the Song, and Kublai’s innovation was merely to make it the sole medium of exchange. Toward the end of the dynasty, an incapable financial administration stimulated inflation by the overissue of paper money, but…
Read More- ChinaEconomy of China
…was the first to make paper money the only legal currency throughout the empire (1260). This facilitated financial transactions in the private sector as well as in the state treasuries. As long as the economy as such remained productive, the reliance on paper money as the basic currency had no…
Read More…was the first to make paper money the only legal currency throughout the empire (1260). This facilitated financial transactions in the private sector as well as in the state treasuries. As long as the economy as such remained productive, the reliance on paper money as the basic currency had no…
Read More