What is the difference between a bank note and a treasury note?

What is the difference between a bank note and a treasury note Introduction: The Foundations of Modern Finance Hello everyone, and welcome to our video on the difference between bank notes and treasury notes. To truly understand these two financial instruments, we need to go back in time, to the very foundations of modern finance. It was during the Renaissance period that the concept of paper money began to take shape. Merchants, tired of carrying around heavy bags of coins, started depositing their money with goldsmiths. In return, they received a receipt, a promissory note, which could be redeemed for the deposited amount. This marked the birth of bank notes, the precursors to the banknotes we use today. Bank Notes: The Currency of Trust Bank notes, as the name suggests, are issued by banks. They are a form of currency, a medium of exchange. When you hold a banknote in your hand, you're essentially holding a promise. A promise from the bank that it will pay the bearer the specified amount on demand. This is known as 'bearer' form, where the person holding the note is the rightful owner. Bank notes are backed by the assets of the issuing bank, be it gold, silver, or other forms of collateral. They are widely accepted as a means of payment, and their value is determined by factors such as the country's economic stability, inflation rates, and market demand.