A $150 banknote question

My reply in this blog entry lead me to this question:

If someone pays good money, for example $280, for a $150 legal banknote which they most likely (say 99.9%) will NEVER use, is it the same as thinking that 99.9% of these banknotes have been burned? How does these affect the bank’s obligation?

(note: burning a legal tender (a banknote) is illegal in many countries)

(By the way, most Post Offices around the world deals with this issue all the time as they frequently issue new stamps and collectors would buy these stamps and NEVER use them. Or will buy the stamps and immediately get the post office to stamp it on the day of their first issue.)

2 Responses to A $150 banknote question

  1. hevangel says:

    Ar… It is not an issue that the bank has to “deal with”. Some idiots give you money in exchange for a piece of paper is not really an issue. The issue is how to get more idiots.

  2. kempton says:

    Horace,

    Let me try to ask it this way. The $150 banknotes SC printed are legal tenders and SC has a legal obligations by issuing them. Now that these notes are almost certain not going to be spent, are they any different from a pair of $100 + $50 banknotes that SC printed?

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