bill of exchange


bill of exchange

Definition of BILL OF EXCHANGE

:  an unconditional written order from one person to another to pay a specified sum of money to a designated person

First Known Use of BILL OF EXCHANGE

1534

bill of exchange

   (Concise Encyclopedia)

Short-term negotiable financial instrument consisting of a written order addressed by the seller of goods to the buyer requiring the latter to pay a certain sum of money on demand or at a future time. Bills of exchange are often used in international transactions, and the holder of such a bill may redeem it in cash immediately by selling it to a bank at a discount. Bills of exchange used in domestic transactions are sometimes called drafts. See also promissory note.

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