There are other banks in the UK apart from the Bank of England (such as the Bank of Scotland), and they all issue their own notes. The government requires that all notes issued must be backed by the same amount in BoE issued notes.
I.e. if they issue £100 worth of Scottish notes, £100 of Bank of England notes must exist somewhere.
In order to make this easier, the Bank of England issues £1,000,000 notes so that the other banks don't have to store loads of smaller denominations.
The note is legal tender, but I have never seen one, so if someone could find a picture of it for me, that would be cool.
2007-06-22
01:00:20
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1 answers
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asked by
saralk
1
in
Business & Finance
➔ Other - Business & Finance