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That's a promissory note. It was redeemable in pound sterling. It's a large denomination note whose purpose and function is to extend credit to the issuing com
by runeks 4y ago
That's a promissory note. It was redeemable in pound sterling.
It's a large denomination note whose purpose and function is to extend credit to the issuing company. It was traded at a discount of its face value, since no business in their right mind would lend money to the issuing company without being compensated. It's an example of a zero coupon bond.
This has very little to do with the irredeemable currency I would allegedly create by writing "runeks money" on a piece of paper.
- atemerev 4y agoWell, imagine some newly created state (South Sudan etc). They can, too, issue notes that initially will be worthless. What do they need to do so their notes will: a) have value for their own population, b) be freely converted to other world’s currencies at some price?