Bills of exchange

A bill of exchange is a written, transferable order directing one party to pay a specified sum to another, either on demand or at a set future date.

Drawer: The person who creates and signs a bill of exchange, ordering payment. The drawer initiates the order and specifies its amount and payee.
Medieval trade: The exchange of goods across regions during the Middle Ages. Long-distance trade created demand for payments that avoided carrying coin.
Trade credit: Credit extended by a seller to a buyer for payment at a later date. A bill could formalize deferred payment for goods sold between merchants.
Promissory note: A written promise by one party to pay a specified sum to another. A note is a promise to pay, while a bill orders someone else to pay.
Drawee: The person or institution directed to pay a bill of exchange. The bill becomes the drawee’s obligation when it is accepted.
Italian city-states: Independent urban polities in Italy that flourished from the Middle Ages into the early modern period. Their merchant networks helped develop and spread bill-based remittance.
Foreign exchange: The conversion of one currency into another and the market where currencies are traded. Bills let merchants settle obligations in different currencies and places.
Cheque: A written order directing a bank to pay money from the drawer’s account. A cheque is a bank-directed payment order, usually payable on demand.
Payee: The person designated to receive payment under a financial instrument. The drawer names the payee, who may later transfer the bill.
Medici Bank: A Florentine banking house that became one of Europe’s most powerful financial institutions in the fifteenth century. Its branches used bills to settle obligations across distant markets.

Linked from 10 pages