Final answer:
European banks developed bills of exchange based on Asian technology to facilitate long-distance money transactions.
Explanation:
Bills of exchange were a new way developed by European banks, based on technology from Asia, to help merchants move money over long distances. These bills allowed merchants to avoid the expense and risk of transporting precious metals by providing a system for paying debts at distant places.
For example, in the trade between New York and Liverpool, using bills of exchange allowed goods to be bartered against each other, eliminating the need for sending actual money across the Atlantic.
This innovative system of bills of exchange facilitated long-distance trade and financial transactions, becoming a crucial method for merchants and banks.
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