22 lines
678 B
Markdown
22 lines
678 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
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# Discount of Bills
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## Definition
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The practice of banks advancing money on bills of exchange before they become due, deducting interest for the time remaining. This provides merchants with immediate liquidity while awaiting payment from customers.
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## Source Chapter
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Book II, Chapter 2
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## Context
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Smith explains how banks make most of their profits through discounting bills of exchange, advancing money to merchants before their bills become due. He analyses this as a key banking service that facilitates trade.
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## Economic Domain
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Exchange
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---
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