Bank reserves are the minimum cash that financial institutions must keep to meet the requirements of the central bank. The bank can not lend money but must keep it in the safe, on the spot or at the central bank, in order to cope with any significant and unexpected demand for withdrawals.
A bill of exchange is a written order that, when used primarily in international trade, obliges one party to pay a fixed sum to another party upon request or at a predetermined date. Bills of exchange are similar to checks and promissory notes.
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.