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Answer :
A bill of exchange acts as (C) conclusive proof of a credit transaction, serving as convenient and transferable evidence of debt, thereby streamlining trade by allowing credit obtained by the buyer to be easily transferred to others, such as bankers, for discounting.
The question pertains to the advantages of using a bill of exchange in credit transactions, specifically that the bill serves as legal evidence of the transaction. One of the advantages of a bill of exchange is that it acts as conclusive proof of a credit transaction, implying that the buyer has obtained credit from the seller of the goods. The bill of exchange simplifies and secures trade by providing a convenient means for a seller to obtain payment and transfer credit to a third party such as a banker, who can discount the bill.
This financial instrument is also valued for its easy transferability, promoting efficiencies in international trade and domestic commerce alike. An example of this is how bills of exchange facilitate trade between New York and Liverpool, allowing goods to be bartered against each other without the actual transmission of money across the Atlantic.
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