What is the difference between a banknote and a promissory note?

What is the difference between a banknote and a promissory note Introduction: The World of Monetary Instruments Greetings, fellow learners! In the vast landscape of monetary instruments, two terms often surface: banknotes and promissory notes. While both are integral to the financial realm, they possess unique characteristics and serve different purposes. Today, we embark on a journey to unravel their dissimilarities, exploring their origins, legal frameworks, and practical applications. So, let's dive in! Banknotes: The Currency in Your Wallet Banknotes, often referred to as 'cash,' are tangible, physical representations of currency. They are issued and regulated by the central bank of a country or a monetary authority. Banknotes are typically made of durable materials like cotton or polymer, ensuring longevity. Their primary function is to serve as a medium of exchange in daily transactions. From purchasing groceries to paying for services, banknotes are widely accepted. Additionally, they bear intricate designs, incorporating elements of a nation's history, culture, and symbols, making them not just utilitarian but also artistic. Promissory Notes: The Written Commitment