Bills of Exchange

Definition

A bill of exchange is a written order used primarily in international trade that binds one party to pay a fixed amount of money to another party at a predetermined future date.

Related terms

Promissory Note: A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Currency Exchange: The system by which one currency is converted into another currency.

International Trade: The exchange of goods or services along international borders.