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Both terms are correct. Most of the world refers to paper currency as "notes" and from a strict viewpoint, so does the US Treasury. But common usage in the US is to call them "bills".

It's just like the way we all call 1¢ coins "pennies" even though the last true 1-penny coins were minted during colonial times.

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10y ago
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Q: Is it a dollar bill or a dollar note?
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