---
entity_slug: bills_of_exchange
evaluator: null
evaluated_at: '2026-02-23T04:38:15.896509'
overall_score: 4.8
scores:
- name: definition_precision
  value: 5.0
  max_value: 5.0
  rationale: The definition is highly precise and non-circular, clearly specifying
    bills of exchange as written orders directing future payment between merchants.
    It captures a distinct financial instrument with specific characteristics rather
    than a vague concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text, as he explicitly discusses
    bills of exchange in Book II, Chapter 2 as instruments of commercial credit that
    banks discount. The definition accurately reflects Smith's analysis of their role
    in facilitating trade without immediate cash payment.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain assignment is perfectly appropriate, as bills of
    exchange are fundamentally instruments that facilitate the exchange of value across
    time and space. This placement correctly categorizes the entity within commercial
    and financial exchange mechanisms.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: Bills of exchange map well to S1 (primary operations) as they are operational
    tools that enable basic commercial transactions, and to S2 (coordination) as they
    coordinate payment flows between different merchants and locations. They serve
    as concrete mechanisms within the viable system of commerce.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides excellent explanatory value by illuminating the
    specific mechanism through which merchants could conduct trade without immediate
    cash, showing how credit instruments enable capital circulation. It reveals a
    structural relation between banking, credit, and commercial operations that is
    central to Smith's analysis.
---

# Evaluation: Bills Of Exchange

## definition_precision — 5.0 / 5.0

The definition is highly precise and non-circular, clearly specifying bills of exchange as written orders directing future payment between merchants. It captures a distinct financial instrument with specific characteristics rather than a vague concept.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text, as he explicitly discusses bills of exchange in Book II, Chapter 2 as instruments of commercial credit that banks discount. The definition accurately reflects Smith's analysis of their role in facilitating trade without immediate cash payment.

## domain_placement — 5.0 / 5.0

The "Exchange" domain assignment is perfectly appropriate, as bills of exchange are fundamentally instruments that facilitate the exchange of value across time and space. This placement correctly categorizes the entity within commercial and financial exchange mechanisms.

## vsm_relevance — 4.0 / 5.0

Bills of exchange map well to S1 (primary operations) as they are operational tools that enable basic commercial transactions, and to S2 (coordination) as they coordinate payment flows between different merchants and locations. They serve as concrete mechanisms within the viable system of commerce.

## explanatory_value — 5.0 / 5.0

This entity provides excellent explanatory value by illuminating the specific mechanism through which merchants could conduct trade without immediate cash, showing how credit instruments enable capital circulation. It reveals a structural relation between banking, credit, and commercial operations that is central to Smith's analysis.
