Questions and Answers
The minting of currencies may have originated before the concept of banking.
True
Temples in ancient times functioned as early banks, providing a secure place for coins.
True
The theory of 'the invisible hand' was introduced in the 18th century by Adam Smith.
True
Wealthy merchants emerged as moneylenders, contributing to the evolution of banking practices.
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Philip II of Spain's excessive debt in 1557 led to the world's first national bankruptcy.
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Smith advocated for increasing state involvement in banking and reducing competitive capitalism?
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Alexander Hamilton's establishment of a national bank aimed to destabilize the industry?
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J.P. Morgan & Co. emerged as a leading merchant bank in the early 1800s?
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The formation of the Federal Reserve led to the concentration of financial and political power in Wall Street?
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The stock market crash of 1929 had no impact on the global economy?
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Study Notes
Origins of Banking and Currency
- The minting of currencies may have preceded the concept of banking.
- Ancient temples functioned as early banks, providing a secure place for coins.
Theories and Key Figures
- Adam Smith introduced the theory of 'the invisible hand' in the 18th century.
- Wealthy merchants emerged as moneylenders, contributing to the evolution of banking practices.
Historical Events
- Philip II of Spain's excessive debt in 1557 led to the world's first national bankruptcy.
Development of Banking Institutions
- J.P.Morgan & Co. emerged as a leading merchant bank in the early 1800s.
- Alexander Hamilton established a national bank.
Concentration of Power and Global Economy
- The formation of the Federal Reserve led to the concentration of financial and political power in Wall Street.
- The stock market crash of 1929 had a significant impact on the global economy.
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