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Convertible bank-note


A bank-note which gives the bearer the right to have its face value converted to gold or some other commodity of value equivalent to the amount stated. Atone time all U.K. bank-notes were convertible - this is evidenced by the 'promise to pay' words thereon - and could be exchanged for gold. Nowadays all the bearer has the right to demand is anothetf,^ note of the same denomination.

Reference: The Penguin Business Dictionary, 3rd edt.