Bill of exchange

A bill of exchange is like a special note that people use when they need to borrow money or buy something. It's like when you ask your parents for money to buy candy, but instead of asking just one person, you ask someone else to pay for it, and you promise to pay them back later.

So, imagine you really want to buy a new toy but you don't have enough money. You could ask your friend to give you the money, but instead, you might choose to write a bill of exchange. This bill of exchange is a written promise that you will pay back the money to your friend.

Once your friend gives you the money, you can use it to buy the toy that you wanted. Then, you give the bill of exchange to your friend. This bill of exchange is like a special notebook page that has all the important details like how much money you borrowed, when you will pay it back, and who you borrowed it from.

In the future, when you have enough money to pay your friend back, you can give them the money and they will give you back the bill of exchange. This is like when you finally have enough allowance to pay your parents back for the candy they bought you. The bill of exchange is like proof that you borrowed the money and that you paid it back.

Overall, a bill of exchange is like a special note that people use to borrow money and pay it back later. It helps people to keep track of who borrowed money and who paid it back.