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Who makes the promise on your bank note?
By:Manish
Date:2018-03-29
People often get confused in deciding that who actually makes the promise that is written on a bank note. Is it the merchant or the buyer or the government or the central bank government? Or is the person whose image is printed on the bank note. This question is also important because as we said in many other blogs on this site that a bank note is just a document of lending, a document of lending the value which you are taking for exchange of this document. And one should clearly know that who is actually making the promise written on the bank note, because it’s actually his liability to return it.
Though the bank note is guaranteed by government it does not mean that government is promising, government is guaranteeing the promise, through the signature of the governor of its central bank. And it’s actually the buyer who is making the promise. It is so because he is actually taking the value. If he will not return it and take the document (the cash) back it’s him who will become poorer because whatever value he took in exchange of the bank note is a value which can be consumed and of course it will come to an end some day.
So does it means that the bank note will not cease, well quite of, though the bank notes are also replaced, but the economic system remains the way it is. If it is not unstable. And since it is governed by people it is stable. If it will become unstable then only by the mistakes from everyone, the economy of a nation is a result of mutual cooperative work by everybody participating in it.
In a democratic world of today we or the people choose the government representative also, the decisions of this representative shapes the government and it also affects your life, so it clearly means that the way you treat this promise shapes your life as well. One must not break this promise if one really wants to live a peaceful life. So if your life has some unrest recall all those services you took from the world and try to pay them back, better you will pay them back better you will pay them back better your life will be. There is nothing more valuable than peace, in life. We usually call this promise as earning, now answer yourself, don't you feel good when you earn?