Bank notes are a legal tender. Legal tender refers to any form of payment that is recognized by law as a means to settle a debt or financial obligation. Bank notes are issued by the central bank of a country and are considered to be a form of currency that is widely accepted as a means of payment for goods and services. This means that when you use bank notes to pay for something, the person you are paying must accept them as payment.
Bank overdrafts, bills of exchange, and money orders are not legal tender. Bank overdrafts are a type of credit that allows you to spend more money than you have in your bank account, but they are not considered a form of payment. Bills of exchange are similar to checks and are used to transfer money between two parties, but they are not considered a legal tender. Money orders are a type of payment that can be used to transfer money, but they are not legal tender.