Banknote Meaning: Definition, Examples, and Translations
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banknote
[ˈbæŋkˌnoʊt ]
Definition
currency note
A banknote is a type of currency that is issued by a financial institution, typically a central bank. It represents a promise to pay the bearer a specific amount of money and is recognized as legal tender for transactions. Banknotes are usually made of paper or polymer and feature various security elements to prevent counterfeiting. They often display images of historical figures, national symbols, or significant events.
Synonyms
Examples of usage
- I withdrew some cash and received a few banknotes.
- The banknote was designed with enhanced security features.
- He collected vintage banknotes from around the world.
Translations
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Interesting Facts
Historical Origins
- Banknotes were initially promissory notes issued by banks, indicating that a certain amount of gold or silver could be exchanged.
- The first banknote in Europe was issued in Sweden in 1661, marking a significant shift from coins to paper currency.
Cultural Impact
- Banknotes often feature significant national figures or symbols, reflecting a country's history, art, and culture.
- Collecting banknotes has become a popular hobby, with some rare notes fetching thousands of dollars at auctions.
Security Features
- Modern banknotes include various security features like holograms, watermarks, and microprinting to prevent counterfeiting.
- The process of designing and printing banknotes involves advanced technology to ensure their durability and safety.
Economics
- Banknotes are part of a country's monetary system, helping to facilitate trade and economic transactions.
- The issuance of banknotes is closely regulated by central banks to maintain economic stability.
Origin of 'banknote'
Main points about word origin
- The term 'banknote' originated in the 17th century, combining 'bank' (where money is stored) and 'note' (a written promise to pay).
- The earliest form of banknotes were used in China during the Tang dynasty (618–907 AD), with the concept becoming widespread in the Song dynasty.
The term 'banknote' originated in the 17th century and comes from the words 'bank' and 'note,' referring to a promise made by banks to pay the bearer a certain amount. Early forms of banknotes were issued by banks as a receipt for deposits, which could be exchanged for gold or silver coins. As trade increased and the need for more manageable currency grew, the practice of issuing paper money became widespread. The first true banknotes were printed in Sweden by Stockholms Banco in 1661. Over time, various countries began issuing their own versions, leading to the modern banknotes we use today. The design and security features of banknotes have evolved significantly, with many countries employing advanced techniques to prevent counterfeiting.