die Banknote
banknote
A paper bill issued by a central bank and used as official means of payment.
Er zog eine zerknitterte Zehn-Euro-Banknote aus seiner Tasche.
He pulled a crumpled ten-euro banknote out of his pocket.

banknote
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banknote
A paper bill issued by a central bank and used as official means of payment.
Er zog eine zerknitterte Zehn-Euro-Banknote aus seiner Tasche.
He pulled a crumpled ten-euro banknote out of his pocket.

The word is made up of 'Bank' (bank) and 'Note' (note). Here, 'Note' does not mean a school grade, but derives from an older meaning for 'written document'. A banknote is therefore literally a document issued by a bank.
Die neue Banknote hat verbesserte Sicherheitsmerkmale.
The new banknote has improved security features.
'Banknote' (banknote) is the official and formal term for a paper bill. You find it especially in texts from banks, in the news, or in laws.
Die Europäische Zentralbank ist für die Ausgabe der Euro-Banknoten verantwortlich.
The European Central Bank is responsible for issuing euro banknotes.
Common adjectives are 'echt' (genuine) and 'gefälscht' (counterfeit), as well as 'neu' (new) or 'zerknittert' (crumpled). Typical verbs related to banknotes are 'ausgeben' (to issue), 'zählen' (to count), or 'wechseln' (to change/exchange).
Der Kassierer prüfte, ob die 50-Euro-Banknote echt war.
The cashier checked whether the 50-euro banknote was genuine.
grade / note
'die Note' and 'die Banknote' can both mean a paper bill. In this meaning, they are very similar. But the important point is: 'Note' is technical or outdated in this sense and can easily be confused with other meanings of 'Note', for example a school grade or a musical note. 'Banknote' is more precise and clearer when talking about official paper money.

Die Bank prüft die beschädigte Banknote am Schalter.
The bank checks the damaged banknote at the counter.
Der Sammler bewahrt eine alte Note aus der Schweiz in einer Hülle auf.
The collector keeps an old banknote from Switzerland in a protective sleeve.