Currency note example sentences

According to the Negotiable Instruments Act 1881, a promissory note is defined as an instrument in writing (not being a bank note or a currency note), containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument.Supply of money, on the other hand, consists of currency notes and coins, demand and time deposits held by commercial banks, etc.Currency notes and coins are therefore called fiat money.Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions.In India, the Reserve Bank of India issues currency notes on behalf of the central government.Similarly, the value of the metal in a five-rupee coin is probably not worth Rs Why then do people accept such notes and coins in exchange of goods which are apparently more valuable than these? The value of the currency notes and coins is derived from the guarantee provided by the issuing authority of these items.In a modern economy money consists mainly of currency notes and coins issued by the monetary authority of the country.In India currency notes are issued by the Reserve Bank of India (RBI), which is the monetary authority in India.Every currency note bears on its face a promise from the Governor of RBI that if someone produces the note to RBI, or any other commercial bank, RBI will be responsible for giving the person purchasing power equal to the value printed on the note.If a member of the public produces a currency note to RBI the latter must pay her value equal to the figureure printed on the note.