3.2. On Bills of Exchanges and their Nature

Update: 2014-12-01

Description

There is an expense associated with transporting money based on the distance, risks, and other transaction costs. Bills of Exchange are a type of contract that can reduce this cost by avoiding shipments that are offsetting between two locations. When money must be sent, bankers charge a fee for arranging the shipment and providing their customers with a bill of exchange, or check, that can be drawn or cashed at a correspondent bank where the money is sent. When the exchange rate is above par, it indicates a balance of payments deficit, and when the exchange rate is below par, it indicates a balance of payments surplus.

From Part 3: International Trade and Business Cycles. Narrated by Millian Quinteros.

Comments

In Channel

3.8. The Refinements of Credit of General Banks

2014-12-01--:--

3.7. Further Explanations and Enquiries as to the Utility of a National Bank

2014-12-01--:--

3.6. Banks and their Credit

2014-12-01--:--

3.5. The Augmentation and Diminution of the Denomination of Money

2014-12-01--:--

3.4. The Variations in the Proportion of Values with Regard to the Metals Used as Money

2014-12-01--:--

3.3. Further Explanations on the Nature of Exchanges

2014-12-01--:--

3.2. On Bills of Exchanges and their Nature

2014-12-01--:--

3.1. Foreign Trade

2014-12-01--:--

2.10. The Causes of Increases and Decreases of the Interest Rate on Money in a State

2014-12-01--:--

2.9. Interest on Money and its Causes

2014-12-01--:--

2.8. Further Reflections on the Increase and Decrease of Money in a State

2014-12-01--:--

2.7. Continuation of the same subject

2014-12-01--:--

2.6. The Increase and Decrease of the Quantity of Money in a State

2014-12-01--:--

2.5. The inequality of the circulation of hard money in a State

2014-12-01--:--

2.4. Further Reflection on the Rapidity or Slowness of the Circulation of Money in Exchange

2014-12-01--:--

2.3. The Circulation of Money

2014-12-01--:--

2.2. Market Prices

2014-12-01--:--

2.1. Barter

2014-12-0103:06

1.17. Metals and Money, and especially of Gold and Silver

2014-12-01--:--

1.16. The more Labor there is in a State, the more the State is Judged Naturally Rich

2014-12-01--:--

00:00

3.2. On Bills of Exchanges and their Nature

#box-pro-ellipsis-175911013784948{-webkit-line-clamp:2;}3.2. On Bills of Exchanges and their Nature

3.2. On Bills of Exchanges and their Nature

Richard Cantillon

3.2. On Bills of Exchanges and their Nature