a person who is ordered to pay the amount of bill of exchange is known as demurrage.
a person who is ordered to pay the amount of bill of exchange is known as?
demurrage
a bill of exchange is essentially an order made by one person to another to pay money to a third person. a bill of exchange requires in its inception three parties—the drawer, the drawee, and the payee. the person who draws the bill is called the drawer. he gives the order to pay money to the third party. the party upon whom the bill is drawn is called the drawee. he is the person to whom the bill is addressed and who is ordered to pay. he becomes an acceptor when he indicates his willingness to pay the bill. the party in whose favor the bill is drawn or is payable is called the payee. the parties need not all be distinct persons. thus, the drawer may draw on himself payable to his own order.
negotiable instrument
discretionary deposits were a partial way out, but the bank made most of its money by selling holographic "bills of exchange". these bills certified that a particular person or company had paid a particular medici branch a certain sum of money, as verified by the general or assistant manager of that branch (who were the only ones allowed to make out such bills). the bill instructed the recipient medici branch to pay back that sum in local currency, but not at whatever the local exchange rate for the two currencies concerned happened to be at the moment the bill was presented to be cashed in, but rather at the exchange rate set when the presenting (or current owner; bills of exchange could be sold and traded freely) person bought the bill of exchange. that there was a difference in time was guaranteed by the terms of the bill. a specific date could be set, but generally the time between a bill was issued in one city and could be cashed in at another was set by long-standing custom, or at "usance". the usance between florence and london was 3 months, for example.
medici bank