Nowadays the words Biscuits and Cookies are fairly interchangeable and you will tend to use one or the other depending on what side of the Atlantic you're from.
From my understanding Biscuits were originally a means of using up leftover bread dough (therefore they would often be yeast based) sugar and fruit was then added where available and thus the biscuit was born. Biscuits as we know them today are usually crisp baked goods of a variety of shapes and sizes. You can even find savoury biscuits ideal for serving with cheese or soup. Biscuits found in the Southern States of American are much closer to a plain scone.
Cookies came by way of the Dutch (from the word Kuchen) and were originally soft baked (a very popular choice to this day).
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