Definition

Noun: 1. Currency in the form of printed paper: Paper money is official currency issued by a government or central bank, consisting of printed paper notes that represent value and are used as a medium of exchange, circulating as a substitute for metallic coins (specie).

Usage

Paper money is used as a physical medium for transactions, representing a promise to pay the bearer a specific value. It is distinct from coins (made of metal) and digital forms of money. - It functions as legal tender, meaning it must be accepted for settling debts. - Its value is typically backed by the authority and credit of the issuing government or bank, not by the intrinsic value of the paper itself.

Examples

Advanced Usage

• "Fiat paper money": Refers to currency that has value because a government declares it to be legal tender, not because it is backed by a physical commodity like gold.
  • Today, most paper money is fiat money.
• In economic contexts, "paper money" can be discussed in contrast to "commodity money" or "representative money."

Variants and Related Words

• Banknote (n): A more specific term for a single piece of paper money issued by a bank. Often used synonymously.
  • He handed me a fifty-dollar banknote.
• Bill (n): Common in American English for a piece of paper money.
  • Do you have a five-dollar bill?
• Note (n): Common in British English for a piece of paper money.
  • I paid with a twenty-pound note.

Synonyms

• Currency: The system of money in general use in a particular country.
• Banknotes: A synonym emphasizing the form.
• Bills: (US English)
• Notes: (UK English)
• Cash: Money in the physical form of currency, which can include both paper and coin.

Related Phrases

• "To print money": The action of a government or central bank producing new paper currency.
  • The central bank decided to print more money to stimulate the economy.
• "Paper money system": Refers to an economic system based primarily on paper currency.
  • The country transitioned to a paper money system in the 19th century.

Noun

1. currency issued by a government or central bank and consisting of printed paper that can circulate as a substitute for specie