Look at a banknote and write down all things it has that could make it a promissory note and all the things it lacks as a promissory note
A banknote typically has the following elements that could make it function as a promissory note:
1. Promissory statement: Banknotes usually contain a clear and explicit statement or promise by the issuing authority (such as a central bank or government) to pay the bearer a specific sum of money upon demand.
2. Denomination: Banknotes specify the face value of the currency, indicating the amount that is promised to be paid by the issuing authority.
3. Signature: Banknotes often feature the signatures of significant individuals, such as the Governor of the central bank or Treasury Secretary, to authenticate the promise made on the note.
4. Serial number: Each banknote is printed with a unique serial number, which helps to identify and track the currency.
5. Design and security features: Banknotes often include intricate designs, watermarks, security threads, holograms, or other features that make them difficult to counterfeit.
However, there are a few key things that banknotes lack when compared to a traditional promissory note:
1. Named payee: Unlike a standard promissory note, a banknote does not explicitly name a specific person or entity to whom the payment is promised. Banknotes are generally payable to the bearer or anyone who possesses them.
2. Repayment terms and interest: Banknotes do not specify repayment terms or any interest that might be paid on the note, as they are typically meant to function as a medium of exchange rather than a financial instrument for debt.
3. Maturity date: Banknotes lack a maturity date since they are generally issued as circulating currency and not meant to be repaid or redeemed by any specific date. Banknotes typically remain in circulation until they are worn out or withdrawn by the issuing authority.
4. Legal recourse: While promissory notes can be legally enforceable documents, banknotes usually do not provide a direct legal recourse for the bearer if the issuer fails to fulfill the promise to pay.