Negotiable Instrument/ Bill of Exchange

Is a document guaranteeing a payment of the specific amount of money or at a set time. It can be compared to a contract promising a Settlement without conditions or at the request in the future.

How does Negotiable Instrument work?

The most common Negotiable Instruments are Banknotes which are supplied by the Central Banks. They promise the owner that they can be exchanged as they have a value. Traditionally, they were drawn up by the bankers and further used by entities in their relationships.

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