---
entity_slug: bank_notes
evaluator: null
evaluated_at: '2026-04-21T21:33:16.736926'
overall_score: 4.4
scores:
- name: definition_precision
  value: 5.0
  max_value: 5.0
  rationale: The definition is precise, clearly distinguishing bank notes by their
    issuer, form, and key characteristics (payable on demand, confidence-based). It
    avoids circularity and captures a distinct concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: The entity is excellently grounded in "The Wealth of Nations," specifically
    Book II, Chapter 2, where Smith extensively discusses bank notes' role in economizing
    precious metals and their reliance on public confidence.
- name: domain_placement
  value: 4.0
  max_value: 5.0
  rationale: '"Exchange" is an appropriate domain as bank notes primarily function
    as a medium for facilitating transactions. While "Money" or "Finance" could also
    fit, "Exchange" accurately reflects their operational role in the economy.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: Bank notes are a critical *medium* or *tool* that enables the primary
    operations (S1) of an economy (i.e., exchange of goods and services). However,
    they are not a VSM system or management function themselves, making their direct
    mapping somewhat abstract.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity offers significant explanatory power by detailing how paper
    money functions, its reliance on confidence, and its role in reducing the need
    for precious metals, thereby illuminating a key mechanism in Smith's economic
    theory.
---

# Evaluation: Bank Notes

## definition_precision — 5.0 / 5.0

The definition is precise, clearly distinguishing bank notes by their issuer, form, and key characteristics (payable on demand, confidence-based). It avoids circularity and captures a distinct concept.

## source_grounding — 5.0 / 5.0

The entity is excellently grounded in "The Wealth of Nations," specifically Book II, Chapter 2, where Smith extensively discusses bank notes' role in economizing precious metals and their reliance on public confidence.

## domain_placement — 4.0 / 5.0

"Exchange" is an appropriate domain as bank notes primarily function as a medium for facilitating transactions. While "Money" or "Finance" could also fit, "Exchange" accurately reflects their operational role in the economy.

## vsm_relevance — 3.0 / 5.0

Bank notes are a critical *medium* or *tool* that enables the primary operations (S1) of an economy (i.e., exchange of goods and services). However, they are not a VSM system or management function themselves, making their direct mapping somewhat abstract.

## explanatory_value — 5.0 / 5.0

This entity offers significant explanatory power by detailing how paper money functions, its reliance on confidence, and its role in reducing the need for precious metals, thereby illuminating a key mechanism in Smith's economic theory.
